Business Chief USA June 2019

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HHH USA

EDITION

JUNE 2019

www.businesschief.com

Supply chain

transformation to

make a difference

DRIVING

OPERATIONAL

EXCELLENCE

Inside the manufacturing

giant’s SCM strategy

TOP 10

Largest companies

City Focus SAN

FRANCISCO

A thriving startup

ecosystem


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FOREWORD

W

elcome to the June issue of

Business Chief USA.

This month’s cover story features

SPX Transformer Solutions, one of the

largest US manufacturers of power

transformers and a leading supplier

of transformer and load tap changer

services, training, reverse-engineered

components and replacement parts.

Sandeep Arora, Vice President of

Global Sourcing and Strategy at SPX

Transformer Solutions, sits down

to discuss the implementation of

the company’s Sourcing Excellence

Framework in order to better drive

operational excellence.

“Strategic sourcing and supply chain

management remains one of the core

functions for the transformer business

and becomes a part of the value creation

roadmap for SPX Corporation as a

whole,” says Arora.

June’s leadership piece features our

interview with Norman Guadagno,

CMO of Carbonite, who discusses the

data protection firm’s $618.5mn

acquisition of cybersecurity company

Webroot, and the careful, considered

do-no-harm methodology that will

carry the companies forward together.

Also this month, Tim Covell, Supply

Chain Director at non-profit World

Vision speaks to editor Harry Menear

about managing a gift-in-kind supply

chain that brings aid to disadvantaged

communities around the world. “Our

strategic vision is to step into the most

fragile countries, in the most fragile

contexts, to help people and communities

out of poverty,” says Covell.

This month’s City Focus features

historic coastal city, San Francisco,

and our Top 10 list ranks the US’

largest companies.

Don’t forget to check out our in-depth

features on Logix Federal Credit Union,

Dunlop Protective Footwear, Deloitte

and Alterna.

Enjoy the issue!

Harry Menear

harry.menear@bizclikmedia.com

03

www.businesschief.com


Between hope

and possible

there’s

a bridge.

There from the beginning to where

we stand today. And to where we will go

from here. One company. One promise.

If you can imagine it, we will build

the bridge to get you there.


USA

EDITION

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EDITOR-IN-CHIEF

HARRY MENEAR

MANAGING EDITOR

OLIVIA MINNOCK

CREATIVE DIRECTORS

DANIEL CRAWFORD

STEVE SHIPLEY

CREATIVE TEAM

FRAZER JONES

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CONTENTS

USING SOURCING

EXCELLENCE

FRAMEWORK

TO DRIVE

OPERATIONS

FORWARD

12

32

Carbonite

& Webroot

The do-no-harm

method

44

NOT YOUR

TYPICAL CLOUD

COMPANY


56

What can tech

businesses do to

address the STEM

skills shortage?

66

Building the

foundation

of tomorrow’s

smart mobility

76

SAN

City Focus

FRANCISCO

86

TOP 10

Largest companies

in the US


CONTENTS

102

World Vision

120

Logix Federal

Credit Union

134

Dunlop Protective

Footwear


148

Deloitte

166

Alterna


12

USING SOURCING EXCELLENCE

FRAMEWORK TO DRIVE

OPERATIONS FORWARD

WRITTEN BY

SOPHIE CHAPMAN

PRODUCED BY

DENITRA PRICE

JUNE 2019


www.businesschief.com

13


SPX CORPORATION

FOR SPX TRANSFORMER SOLUTIONS,

SCM STRATEGY IS ABOUT IMPLE-

MENTING SOURCING EXCELLENCE

FRAMEWORK AND DIGITIZATION

TO IMPROVE SPEND VISIBILITY AND

OPERATIONAL EFFICIENCY

14

A

s a key aspect of the SPX Corporation’s

value creation roadmap, strategic sourcing

is expanding from a back-office function

to an integral efficiency improvement operation.

“SPX Transformer Solutions’ value creation roadmaps

target operational excellence and margin

expansions through continuous improvements and

excellence initiatives in Engineering, Sourcing and

Manufacturing,” notes Sandeep Arora, Vice President

of Global Sourcing and Strategy at SPX Transformer

Solutions. “In that way, strategic sourcing

and supply chain management remains one of the

core functions of transformer business and thereby

becomes a part of the value creation roadmap for

SPX Corporation as a whole.”

SPX Transformer Solutions operates medium

and large power transformer manufacturing plants

in Waukesha, WI and Goldsboro, NC as well as components

division manufacturing Transformer Health

Products® in Dallas, TX.

JUNE 2019


www.businesschief.com

15


SPX CORPORATION

16

Arora joined SPX Transformer Solutions

in 2014 and has more than 25

years of transformer and switchgear

industry experience in the Transmission

and Distribution energy sector.

Arora has held positions as Managing

Director at Schneider Electric’s Distribution

Transformer business in the

India Region, as well as VP of Business

Development and Supply Chain at

Schneider Electric’s US-based Distribution

Transformer division. Arora has

also held the position of Plant Manager

at CG Power within the Medium

Power Transformer business in the

EXECUTIVE PROFILE

Sandeep Arora

Sandeep joined SPX in 2014 as VP of Global Sourcing and Strategy. From

2008 Sandeep spent 5 years with Schneider Electric, India as the

Managing Director of Transformers (India region) and in 2012

moved to Schneider Electric, USA as the VP of Supply Chain

& Business Development. Prior to 2008, Sandeep worked with

CG Power in India and the USA for over 15 years in various

roles within manufacturing, supply chain, project management,

business development, M&A and Information Technology. During

his 25+ years of business and operational excellence expertise

he has set up and strategically grown global organization

in Asia, Europe and the US region with Supply chain

optimization and business development. Sandeep earned

his Bachelor of Electrical Engineering and an MBA in

Marketing from Nagpur University, India.

JUNE 2019


“THE SCM STRATEGY

IS DRIVING OUR

SUPPLY CHAIN

TO BE SMOOTH

AND EFFECTIVE”


Sandeep Arora,

VP Global Sourcing & Strategy,

SPX Transformer Solutions

17

EXECUTIVE PROFILE

Brian Mason

Brian joined SPX in 2015 and was appointed as an Executive

Officer in 2017. Brian spent 14 years with Emerson Electric, most

recently as the President of Emerson Connectivity Solutions.

He started his career with General Electric and graduated

from its Manufacturing Management Program. He worked

in multiple businesses with roles in engineering, operations

and product leadership. Brian has obtained expertise

in global manufacturing, operational excellence, M&A

and business turnarounds through 25+ years of

leadership experience across multiple continents and

industries. Brian earned his MBA from Northwestern

University and his B.S. in Electrical Engineering

from Michigan Technological University.

www.businesschief.com


SPX CORPORATION

18

“I WORK CLOSELY

WITH THE BUSINESS

FUNCTIONS TO

CREATE A CULTURE

OF EXECUTING

CUSTOMER

SATISFACTION”


Sandeep Arora,

VP Global Sourcing & Strategy,

SPX Transformer Solutions

US and Deputy General Manager of

Operations, Supply Chain and Projects

at the same firm, working in the Large

Power Transformers unit in India. He

is a proven international leader skilled

in flexing global operations to meet

changes in customer cost and spend

requirements.

Arora explains “My role is essentially

to work closely with the business functions

to create a culture of executing

customer satisfaction, focused on cost,

efficiency improvements, and supplier

performance.” Arora adds, “one key

step for me as a supply chain and

JUNE 2019


CLICK TO WATCH: ‘SPX TRANSFORMER SOLUTIONS OVERVIEW’

19

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sourcing leader is to meet with internal

departments and suppliers to identify

the pain points and improve operational

efficiency.” He further states that

by having open conversations with key

suppliers and partners, the company

has turned its supply chain into a network

where information is shared in

trust to have a win-win strategy.

Since 2015, the SPX Transformer Solutions

team has driven the supply chain

methodology using sourcing excellence

framework which is now well established

and followed within the business.

STRATEGIC SOURCING: WHAT DOES GOOD

LOOK LIKE?

The Sourcing Excellence Framework

(SEF) helps the business drive operational

efficiency and margin stability

when price volatility and supply chain

risk on commodities exist. For example,

commodities like steel and aluminum

– mainly driven by section 232 tariffs –

continue to be unfavorable to transformer

original equipment manufacturers

(OEMs) in the US.

“Since 2018, our proactive approach

in implementing the Sourcing Excel- 21

SOURCING EXCELLENCE FRAMEWORK –

“SIMPLIFY THE WAY WE WORK”

www.businesschief.com


SPX CORPORATION

COMPANY FACTS

At SPX Transformer Solutions we

strive to improve operational

efficiencies and margins through

• Continuous improvement

• Strategic sourcing: Risk

mitigation through dual sourcing,

vendor consolidation and

insourcing to leverage synergies

across SPX businesses

• Sustainability

22

JUNE 2019


$1.5bn+

Approximate

revenue

1912

Year founded

5,000+

Approximate number

of employees

23

www.businesschief.com


SPX CORPORATION

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JUNE 2019


lence Framework has helped us mitigate

some supply chain risks mainly

driven by trade actions on steel and

aluminum. This in large power transformers

has made US Transformer

manufacturers non-competitive due

to imports coming from other regions,”

Arora notes.

The sourcing framework was put

in place to ensure our supply chain is

smooth and effective, as it enables us to

manage our top suppliers using 80/20

rule. The 80/20 rule focuses on 80% of

our overall direct spend which is managed

by 20% of suppliers. By having

long-term dual sourcing contracts and

vendor consolidation we get better

reliability and repeatability. Arora says:

“The sourcing excellence framework,

as it is based on Total Cost of Ownership

(TCO), also addresses vendor

consolidation and in-sourcing, thereby

leveraging synergies across other

SPX Corporation businesses. It has

also helped the procurement function

to be “Future Proof” through “Balanced

Enforcement and Enablement”.

In SPX Transformer Solutions, the

latest transformation is the digitization

of its procurement operations. “With

supplier spend data analytics, we’re

aiming to further improve supplier

25

www.businesschief.com


SPX CORPORATION

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JUNE 2019


27

performance on Quality, Cost and

Delivery (QCD) through digitization.

We’re currently using the software

interface-Qlik which talks to our

Enterprise Resource Planning (ERP)

system and other softwares for realtime

analysis of data. Along with

this, we have integrated a contract

management tool to manage Master

Procurement Agreements and drive

business process improvements” says

Arora. The mantra here is to “simplify

the way we work”.

To further strengthen the SPX Transformer

Solutions continuous improvement

and performance management

culture in terms of “what does good

look like in sourcing” Arora collaborates

with his peers and team members

by asking questions which helps the

business to remain competitive:,

• Do we have a long-term contract with

our top suppliers to control 80% of

our total spend?

• Do we have a firm price contract

using the ‘should cost’ model to avoid

price increase risks?

• Do we have dual sourcing?

www.businesschief.com


SPX CORPORATION

• Do we have the right payment terms

with our suppliers to support our

operating working capital?

• Do we have the right Incoterms® with

our vendors?

• Do we have the right inventory carrying

cost and turns ratio?

The company’s tools address these

uncertainties.

The other major contributor towards

our transformation is the Supply Chain

Management (SCM) strategy. The

SCM strategy has five intrinsic

elements to its approach other than

sourcing. “When we talk about the

SCM strategy we start with sourcing,

which is made up of two parts:-

strategic, which includes risk mitigation

strategy through dual sourcing using

should cost model and operational,

which includes transactional day-today

buying,” states Arora.

SUPPLY CHAIN MANAGEMENT STRATEGY

“Besides sourcing, supplier management

is the other important piece of

28

SUPPLY CHAIN MANAGEMENT STRATEGY

“Master excellence thru repeatability”

JUNE 2019


“CONTINUOUS

IMPROVEMENT

SHOULD BE

EMBEDED IN THE

CULTURE OF

ORGANIZATION”


Sandeep Arora,

VP Global Sourcing & Strategy,

SPX Transformer Solutions

SCM strategy, in which we assess

how we qualify, evaluate and classify

our suppliers. We also ensure that we

have dual sourcing in place, so that we

are not caught unaware when a single

source supplier is no longer viable on

QCD” says Arora.

Then we must talk about people –

to implement any strategy, we need

engagement of our employees. People

can become a major challenge if not

involved at the right time as before introducing

new suppliers manufacturing

employees need to be ready to accept

and manage the change effectively.

For achieving this, first and foremost

we need to select and upskill the right

staff by providing carrier paths through

functional development. Finally, we

look at organization structure and

business intelligence to get optimum

benefits by aligning SCM strategy to

our business strategy.

For SPX Transformer Solutions,

SCM strategy is more than just a buzz

word – it’s a habit that defines the business’

culture and enables continuous

improvement. According to Arora to

drive sourcing excellence initiatives,

“continuous improvement should be

embeded in the culture of organization.”

Ultimately, the business aims to

improve operational efficiency, which

Arora claims can be achieved within

these three functions in an organization:

one is through redesign to cost,

which is led by engineering, the other

is productivity improvement, which is

driven by manufacturing and the final

one is sourcing efficiencies driven

through a sourcing excellence framework.

In regards to the financial impact,

as Cost Of Goods Sold (COGS) is

the largest contributor to transformer

operational cost, and therefore the biggest

opportunity to improve COGS lies

in the sourcing bucket.

To implement a successful SCM

29

www.businesschief.com


SPX CORPORATION

30

JUNE 2019


strategy with highest value creation,

the firm has aligned a sourcing excellence

framework to internal manufacturing

and engineering capabilities.

Arora adds that the company’s supply

chain transformation journey in

2015 would not have started without

the support of suppliers and partners.

“These long-term strategic partnerships

encourage SPX Transformer

Solutions team and its suppliers, to

focus less on immediate fluctuations in

the market and more on value creation

types of opportunities together outside

of the daily buyer and seller arrangement.

Companies committed to one

another are better positioned to share

the impact of price fluctuations together

resulting in more stability over

the long run.”

Arora concludes by echoing SPX

Transformer Solutions’ President-Brian

Mason’s belief, “As SPX puts its business

system strategy using operational

excellence in place, it aims to leverage

synergies between its portfolio of

products to drive company growth

in an ‘efficient and organic’ way.”

31

www.businesschief.com


LEADERSHIP

32

The do-no-harm

method

Norman Guadagno, CMO of Carbonite,

discusses the data protection firm’s

$618.5mn acquisition of cybersecurity

company Webroot, and the careful,

considered do-no-harm methodology

that will carry the companies

forward together

WRITTEN BY HARRY MENEAR

JUNE 2019


www.businesschief.com

33


LEADERSHIP

34

The modern technological landscape stands

poised on the brink of a new revolution.

Promising dramatically faster internet speeds

and the potential for a ten-fold increase in the number

of potential endpoints connected to the cloud, 5G

is set to catalyse the next stage of evolution for

the internet age. Alongside a proliferation of new

opportunities, this new era of increased connectivity

will also be one of increased risk. Living in an age of

increased cyber risk where the pace of technology

exceeds the ability of the average user to protect

their data, cybersecurity firms are working to

increase their capabilities alongside the cloud

revolution, the rise of software as a service (SaaS)

and the new 5G era.

“The rise of SaaS has given far more power to

any individual to accumulate, analyze, aggregate,

store and distribute data than ever before,”

explains Norman Guadagno, Chief Marketing

Officer (CMO) of Carbonite, Inc, a data protection

platform provider headquartered in Boston,

Massachusetts. “We’re seeing an uptick in not just

intelligent endpoints such as laptops and tablets

and mobile phones, but also less intelligent devices,

IoT devices that are creating tremendous potential

vulnerabilities for businesses. The amount of data

that people find on their own endpoint device,

and the ability to successfully manage that often

outpaces their own awareness. Not only do most

individuals and small businesses not even know

JUNE 2019


“We’re seeing an uptick

in not just intelligent

endpoints such as

laptops and tablets and

mobile phones, but also

IoT devices that are

creating tremendous

potential vulnerabilities

for businesses” 35


Norman Guadagno,

CMO, Carbonite Inc

www.businesschief.com


LEADERSHIP

36

“The rise of software

as a service has given

far more power to

any individual to

accumulate, analyze,

aggregate, store and

distribute data than

ever before”


Norman Guadagno,

CMO, Carbonite Inc

how many different cloud services

they’re using, they also can’t

successfully tell you how much data

is stored locally, how much data is

stored in the cloud, how much data

is in both places: where does all the

data live? We feel like there is an

opportunity for us to step into that

breach,” Guadagno explains.

In March, 2019, Carbonite – which

reported a net revenue of

US$296.4mn in 2018 and employs

over 1,000 people - completed the

purchase of cloud-based

cybersecurity firm Webroot for a total

cash consideration of $618.5mn, the

company’s largest acquisition to date.

Business Chief spoke with Guadagno

following the acquisition, who shared

his insight into the cybersecurity

landscape, Carbonite’s acquisition

of Webroot and the careful, measured

approach the company is taking to

both provide a complete, end-to-end

cybersecurity solution to its

customers, and also adopt a ‘do-noharm’

approach to integration of

two of the US’ leading technology

providers.

Founded in 2005 and 1997,

respectively, Carbonite and Webroot

JUNE 2019


CLICK TO WATCH: ‘CARBONITE – A GREAT FIT FOR PARTNERS’

37

are no strangers to the changing face

of the technological landscape. “When

Webroot was founded, the world was

very different from a technology

standpoint,” Guadagno recalls, noting

that the Colorado-based tech firm has

been battling computer viruses and

protecting data since before the cloud

revolution, the mass adoption of

mobile devices and “before a world

where cybersecurity was a top priority

for everyone.” Likewise, Carbonite,

“which was established to solve the

problem of one of our founders’

daughter losing her school term paper

because the computer crashed,” was

creating cloud solutions before the

adoption of SaaS powered by the

cloud became pervasive. “As time has

passed, and as the mobile revolution

has taken place, then the Cloud

revolution and the privacy revolution –

all of it has morphed and changed the

landscape dramatically. And both

companies have continued to morph

and change. Carbonite ultimately

moved out of serving consumers

and more to serving businesses, and

Webroot expanded its capabilities,

building an artificial intelligence engine

www.businesschief.com


LEADERSHIP

38

that capitalizes on the cloud and the

ability to learn from a lot of data points

in real time,” says Guadagno. With their

fates now combined, both companies

will undoubtedly benefit from

knowledge of the value of careful

change over time and in response to

the needs of their customers.

“There are businesses running

complex technology infrastructures

and handling large amounts of data

but not having super sophisticated IT

capabilities,” Guadagno says. “Into

that world, Carbonite began to form

a plan to provide better protection for

the data and the ability to backup and

recover the data.” As Carbonite

evolved its data backup process, the

company quickly recognized the need

for greater cyber threat protection for

its customers in order to provide a

more complete and protective service.

“When we acquired Webroot, our aim

was to bring a 360-degree perspective

to the ability to protect the endpoint

device from cyber attacks. If an attack

gets through, as they sometimes do

because people clink on links or make

other human errors, we also have the

ability to make sure that the data can

be recovered seamlessly through our

“As time has

passed, and as the

mobile revolution,

the cloud revolution

and the privacy

revolution have

taken place, all

of it has morphed

and changed

the landscape

dramatically”


Norman Guadagno,

CMO, Carbonite Inc

JUNE 2019


ackup and recovery technology,”

explains Guadagno. In acquiring

Webroot, Carbonite’s strategy has

evolved towards its goal of “fulfilling

this desire to provide an end-to-end

capability for companies to protect

their data, their business and

themselves. And do it in a way that we

believe will be integrated, easily, simply

and affordably,” says Guadagno.

Guadagno admits that, in the wake

of Carbonite’s biggest acquisition to

date, “it’s so easy to get swept up by a

river of excitement when there’s a new

thing ahead, but that doesn’t always

serve all of the partners and

customers who’ve been with you for

a long time and who need to continue

to make sure are served every day.”

With this in mind, Carbonite and

Webroot are progressing into the

future with a methodical, considered

approach that belies the rapid pace

of the technological ecosystem they

inhabit. “The first rule we’re following

as we start to walk down a path

toward creating greater value and

experiences for our customers,

and our partners, is to do no harm,”

emphasizes Guadagno. “We want to

take this slowly, because the things we

39

www.businesschief.com


LEADERSHIP

40

sell today - our customers are happy

with, and we don’t want to mess that

up. So, the very first thing we’re doing

is continuing to meet with customers

and partners to get their input on what

they need across the board, so that we

can make sure that we enable

ourselves to deliver that,” he continues.

“We are very methodically, thoughtfully

finding opportunities to bring the

companies together, through go-tomarket

motions such as cross-selling

and referrals, and then ultimately

through a future where there will

be some type of integration across

products and integration across

sales channels.”

“There are businesses

running complex

technology

infrastructures and

handling large amounts

of data but not having

super sophisticated

IT capabilities”


Norman Guadagno,

CMO, Carbonite Inc

One of the biggest advantages

facing Carbonite and Webroot is the

fact the companies have very

complementary customer bases.

“Webroot is very strong with small

managed service providers delivering

cyber security to their customers and

Carbonite business is very strong with

Value added resellers, delivering a

backup and recovery solution to their

customers,” explains Guadagno. “We

want to make sure that we’re thinking

through and balancing how we deliver

JUNE 2019


COMPANY BIOS

Carbonite provides a robust

Data Protection Platform for

businesses, including backup,

disaster recovery, high availability

and workload migration

technology. The Carbonite Data

Protection Platform supports

businesses on a global scale

with secure cloud infrastructure.

Webroot harnesses the cloud and

artificial intelligence to protect

businesses and individuals against

cyber threats. Webroot providers

cybersecurity for managed service

providers and small businesses,

who rely on Webroot for endpoint

protection, network protection,

and security awareness training.

41

more value. Of course, you want to do

this quickly - that’s just a reality of

running a business and a public

company - but we are trying to be

thoughtful and keep our customer

experience first and foremost in our

minds.” Looking to the future,

Guadagno is confident that Carbonite

and Webroot’s careful, do-no-harm

approach will serve both the

companies and their customers in a

world where technological advances

and cybersecurity risks are moving

at ever-increasing speeds. “We’ve

developed a model to show how we

balance the needs of the company, the

needs of our customers and partners,

and the needs of the marketplace

overall,” Guadagno concludes.

“We are taking a thoughtful, methodical

approach to really build something

for the future.”

www.businesschief.com


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TECHNOLOGY

NOT YOUR

TYPICAL CLOUD

COMPANY

44

JUNE 2019


In Alibaba Cloud’s dynamic office in London,

Business Chief spoke with Yeming Wang,

General Manager for EMEA, to learn how

the Chinese juggernaut is redefining the way

we think about cloud technology

WRITTEN BY LAURA MULLAN

45

www.businesschief.com


TECHNOLOGY

46

Grappling with some of the largest

bemouths in the cloud computing

industry, in China it’s Alibaba Cloud

which reigns king. The cloud computing arm

of Alibaba Group has quickly earned its

stripes as China’s largest public cloud service

provider and has the third largest share of the

cloud computing market globally, according

to Gartner. Now keen to extend its reach

further afield, the company has its eyes set

firmly on a new horizon: the EMEA market.

One man at the heart of this strategy is

Yeming Wang, General Manager for the

EMEA region. Well-versed in the technology

space, Wang has previously worked for

Huawei, managing its operations in Italy,

France, Thailand, Indonesia and abroad.

This gave him the perfect springboard to drive

Alibaba Cloud’s EMEA expansion, a goal

which he says is central to the firm’s strategy

moving forward. “Alibaba Group has a very

strong presence in the Asia-Pacific and we

aim to be number one in this region,”

observes Wang, pointing to the group’s global

businesses like e-commerce firm Lazada.

“Besides the Asia-Pacific, we view regions like

Europe as very strategic because of its size

and maturity. In the Asia-Pacific region,

people are still talking about migrating to

cloud, whereas in Europe the discussion is

JUNE 2019


47

MORE AND MORE

PEOPLE ARE REALIZING

THAT ALIBABA ISN’T

JUST AN E-COMMERCE

OR A CLOUD COMPANY,

IT’S A DIGITAL

TRANSFORMATION

ENABLER


Yeming Wang,

General Manager for EMEA,

Alibaba Cloud

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TECHNOLOGY

48

ALIBABA HAS A

RANGE OF BUSINESSES

IN SECTORS SUCH AS

RETAIL, FINANCE AND

LOGISTICS AND WE ALSO

UNDERSTAND HOW

TO CREATE A

DATA-DRIVEN USER-

CENTRIC EXPERIENCE


Yeming Wang,

General Manager for EMEA,

Alibaba Cloud

now about the digital journey and how

to use artificial intelligence (AI) or Big

Data to drive business value.”

Alibaba Cloud’s gleaming office in the

heart of London is perhaps a testament

to its global ambitions. Reclining

confidently in his chair, Wang contends

that, although there may be stiff

competition, Alibaba Cloud is creating a

distinguished cloud experience like no

other in the region. This is not only

because it understands the intricacies

of the cloud environment, but also

because it also understands the highstakes

business world.

“When selecting cloud providers,

customers are looking for value, stability,

security and cost-efficiency. But at the

very top it’s different: businesses are

looking to see how they can use our

vertical expertise to make their business

better. So, for instance, how can they use

data or machines to better their

business? It’s a totally different game,” he

says. “Alibaba has a range of businesses

in sectors such as retail, finance and

logistics and so we understand how to

create a data-driven user-centric

experiences. We fully believe we can

help our clients deliver this too.”

JUNE 2019


CLICK TO WATCH: ‘ALIBABA CLOUD: MORE THAN JUST CLOUD’

49

In many ways, you would be hardpressed

to find an industry vertical

where Alibaba Group isn’t within reach.

Whether you’re interested in retail,

hospitality, IT, or fintech, the Chinese

conglomerate is omnipresent. By

leveraging its tried-and-test

experience in these fields, Wang

contends that Alibaba Cloud can show,

not just tell, its customers how to

digitally transform their industries. “At

an infrastructure level, we can prove

we’re reliable,” explains Wang. “Today,

Alibaba Group manages more than 1trn

US dollars every year and 60-70% of

this business is managed on the cloud.

Recently we’ve made a strong

commitment that we will migrate 100%

to the cloud over the next couple of

years.” With over $39.9bn in revenue

bagged in its last fiscal year, this is

no mean feat. With this in mind,

Alibaba Cloud doesn’t just support the

Group’s business, it serves as a clear

demonstration to its customers of what

its technology can do.

Overlooking the bustling streets of

Covent Garden, it seems that Alibaba

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TECHNOLOGY

Cloud is not just making its mark on the

London skyline, it’s also leaving a

lasting impression on the city’s

burgeoning cloud industry. However,

it’s important to recognize that, in many

ways, Alibaba Cloud is much more than

just a cloud company. As the

technology and business worlds

become ever more intertwined,

Alibaba Cloud has tried to position

itself as a digital transformation

enabler, offering data and service

platforms too. “Once they’ve adopted

cloud, businesses can prepare for the

second stage where they derive value

from AI or Big Data,” explains Wang.

“Then they can focus on the real

business outcomes.”

Having touched every industry

imaginable, Wang contends that

customers can leverage the cloud

company’s insights and expertise to

50

IT’S IMPORTANT TO RECOGNIZE

THAT, IN MANY WAYS, ALIBABA

CLOUD IS MUCH MORE THAN

JUST A CLOUD COMPANY


Yeming Wang,

General Manager for EMEA,

Alibaba Cloud

JUNE 2019


disrupt their own verticals. “Our

consumers often ask how we run

Alibaba. So, for example, a hotel

company may ask how Alibaba Group

manages its hotel, Flyzoo. In this hotel

in Hangzhou, China, everything is

automated. There are no people;

customers use self check-in and are

served by robots. When you get into a

room you use voice control. If you need

room service, a robot will get it for you.

The reason we do this is because we

don’t just want to run a hotel, we want

to show people the possibilities of what

we can do,” Wang says. Hotel giants

like InterContinental Hotel Group (IHG)

have already benefited from Alibaba

Cloud’s expertise. With more than 350

hotels in Greater China, the hotel group

has joined forces with Alibaba Cloud

to develop a scalable and robust IT

infrastructure that will support its

51

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TECHNOLOGY

52

long-term growth goals. In doing so,

it hopes to blend best-in-class

technology with first-rate hospitality.

Alibaba Cloud has not just disrupted

the hotel market though, it’s also left a

lasting impression in the retail market

too. Jack Ma, one of the founders of

Alibaba Group, is often credited for

coining the term ‘New Retail’, a new

omnichannel way of thinking where the

lines between offline and online

commerce are becoming infinitely

blurred. With its parent group standing

as one of the largest and most valuable

e-commerce companies in the world,

Alibaba Cloud is well-equipped to offer

sage advice and digitally disruptive

technologies in this space. “Today,

everyone in retail understands the

importance of omnichannel offers and

user-centric experiences,” highlights

Wang, pointing how Alibaba’s

collaboration and communication

platform DingTalk could be a valuable

solution to connect employees, for

instance. Indeed, one retail titan that’s

working alongside the cloud

computing business is Spain’s El Corte

Inglés, the biggest department store in

Europe by sales. Joining forces with

Alibaba Cloud, the Madrid-based

JUNE 2019


department store is leveraging tools

including big data analytics, artificial

intelligence and more to deliver more

personalized experiences to its

customers today.

Verticals such as finance and smart

cities have also been identified as key

target markets for Alibaba Cloud but,

regardless of the sector, one thing is

for certain: digital transformation is set

to be at the heart of the company’s

business strategy moving forward.

“We’ve seen that for almost every

company today, especially in Europe,

CIOs and CTOs don’t have any doubts

about digital transformation,” Wang

adds. “A could of years ago they were

deliberating about whether to use

cloud, but now they’re asking whether

they will use Big Data or Artificial

Intelligence. They have digital

transformation strategies and are

looking towards digital

platforms because they want to

change the rules. They want to

be a game changer.” This has

offered a window of opportunity

for Alibaba Cloud, with Wang

noting how customers are keen

to develop intelligence-based

partnerships with “agile

53

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TECHNOLOGY

54

ALIBABA GROUP

MANAGES MORE

THAN ONE TRILLION

US DOLLARS EVERY

YEAR AND 60-70%

OF THIS BUSINESS

IS MANAGED ON

THE CLOUD


Yeming Wang,

General Manager for EMEA,

Alibaba Cloud

JUNE 2019


companies like Alibaba Cloud who

have strong internet DNA”. Indeed, the

cloud computing giant has established

partnerships and attracted

2.3mncustomers worldwide, including

over 1mn paying customers.

Yet, when asked what he has been

most proud of during his tenure, Wang

cites the company’s growing brand

awareness, pointing out how it’s much

more than your typical technology firm.

“More and more, people are realizing

that Alibaba isn’t just an e-commerce

or a cloud company, it’s a digital

transformation enabler,” says Wang,

noting how, looking forward, the firm

plans to deepen its partnerships with

industry experts like KPMG and

Deloitte. “We want to deliver our Asian

digital success story to the western

market” he concludes. “It’s not just

about cloud, it’s about business and

digital transformation.”

55

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PEOPLE

56

What can

tech businesses

do to address

the STEM

skills shortage?

RICH MORTIMER, CHIEF PEOPLE OFFICER

AT EGRESS SOFTWARE TECHNOLOGIES,

REFLECTS ON HOW THE TECHNOLOGY

INDUSTRY CAN SOLVE THE ISSUE OF

THE SKILLS SHORTAGE IN SCIENCE,

TECHNOLOGY, ENGINEERING AND

MATHEMATICS (STEM) THAT THREATENS

TO SLOW THE PACE OF PROGRESS

WRITTEN BY RICH MORTIMER

JUNE 2019


www.businesschief.com

57


PEOPLE

58

We are living through a period of

unprecedented change. Rapidly

evolving technology has transformed

how we live and work, creating

expectations for the future that would have

seemed the stuff of science fiction just a few

decades ago. It’s easy to get caught up in the

vast possibilities that technology offers, but

we must remember that people are the ones

driving innovation in this exciting new world

and they are central to its success. To fully

realize the potential of the technology at

our fingertips, it’s vital that we invest in our

people resources and address the skills

shortage in science, technology, engineering

and mathematics (STEM) that threatens

to slow the pace of progress.

A recent STEM skills indicator showed

that businesses at the cutting edge of the

industrial economy, from healthcare to

Artificial Intelligence and robotics, are feeling

the effects of a lack of STEM skills

in the UK workforce. Additional costs of

£1.5 billion were associated with difficulties in

recruiting staff with the right skill level; 7 in 10

businesses had struggled to fill key positions.

While the UK government has rightly

identified increasing the UK population’s

STEM skills as a priority and a pillar of its

JUNE 2019


“Young people start

making career choices

at a very early stage,

so encouraging them to

consider STEM-related

roles must reflect that.

We need to start

competing for talent

in the classroom”


Rich Mortimer,

Chief People Officer,

Egress Software Technologies

59

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PEOPLE

60

industrial strategy, this transformation

can’t happen overnight – and in the

interim we face a skills crunch. As a

scale-up business in the technology

industry, at Egress we have first-hand

experience of working hard to attract,

recruit and retain the skilled employees

vital to our fast-paced growth. It’s

clear from this experience that the

technology community urgently needs

to step-up to tackle the lack of STEM

skills head-on and get smarter about

building our own pipeline of talent.

This way we can strengthen our own

workforce continuity, while also

offering exciting opportunities to

a wider range of people.

EARLY EXPOSURE IS ESSENTIAL

Young people start making career

choices at a very early stage,

so encouraging them to consider

STEM-related roles must reflect that.

We need to start competing for

talent in the classroom.

Research shows that girls in

particular begin to lose interest in

STEM-related careers in their

JUNE 2019


CLICK TO WATCH: ‘THE TRUST NETWORK’

61

mid-teens, with 58% of them dismissing

the idea of a STEM career by the

time they reach university. As an

industry, we need to work with schools

and youth organizations to promote

the benefits, opportunities and

satisfaction that careers in technology

offer entrants from all backgrounds.

Doing this successfully means

looking at what motivates young

people. Today’s career entrants are

prioritizing quality of life over the

accumulation of physical assets like

cars and houses; they’re looking for

“purpose, not paychecks”. However,

the tech sector is strongly positioned

to provide both. Technology is the

biggest force for change on the planet

right now, capable of solving some of

humanity’s most pressing problems.

Opportunities to make a positive

difference to the world abound and

this should appeal to young people

seeking meaningful careers.

The tech industry is also growing

exponentially at a time when many

traditional industries are facing

disruption. It therefore provides

greater job security for those who

have the skills to be part of it.

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PEOPLE

62

These should be compelling

messages for young people who are

considering their education and career

options. We need to build awareness

and keep providing touchpoints with

the industry, so that when students

come to make choices, we are firmly

on the shortlist.

THE POWER OF UNDERGRADUATE

PLACEMENT PROGRAMMES

There’s been a common complaint

from businesses in recent years that

graduates lack basic workplace skills,

such as time and workload management.

The obvious remedy for this is

experience in the workplace and this

is something we strongly support

at Egress.

Increasingly, universities are recognizing

that employability skills are

at least as important as academic

achievements and they’re becoming

more proactive about engaging with

businesses to secure work placement

for undergraduates. As a tech company,

it’s our responsibility to reach out as well

and provide meaningful placements,

JUNE 2019


“Offering non-financial

advantages to employees

is an important strategy

for scale-up businesses

trying to appeal to today’s

career entrants”


Rich Mortimer,

Chief People Officer,

Egress Software Technologies

63

which give undergraduates realistic

insight into how businesses operate in

the commercial environment. Even if

ultimately, a student decides against

a career in technology, experience in

the workplace is transferable and will

increase their value for future employers.

Undergraduate placement programmes

are also hugely valuable for

the companies that offer them; they’re

where you start to identify your future

talent. It has worked well for Egress,

with several of our current staff joining

after spending a year with us during

their undergraduate studies – with

even more on their way following

graduations in 2019/20. Having got

to know these individuals during their

placement year, we can be confident

that they have the right cultural fit, the

skills potential we need, and are ready

to grow alongside the business.

BUILDING LOYALTY THROUGH TRAINING

AND DEVELOPMENT

Once we’ve recruited into STEM roles,

we have to create the right environment

to retain staff and create loyalty.

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PEOPLE

64

Evidence suggests that high-level

STEM employees are less likely than

counterparts in other roles to receive

ongoing training, which is an imbalance

that tech companies must be at

the forefront of correcting.

Today’s career entrants place heavy

emphasis on personal development,

so continuous learning opportunities

and career progression are vital.

It’s important that as start-ups mature

into scale-up businesses, there is a

formalization of training and development

strategies that will attract and

retain employees.

Workplace training has changed

a lot in the past 20 years – and for

the better. Previously you might have

spent five days in a classroom and

received a certificate at the end, but

today, training is much more hands-on

and real-world focussed. At Egress,

our Academy Programme offers

personalized training to employees

at all levels of the business, from

apprentices and undergraduates,

right up through management and

at executive level. We typically run

six-month programmes with multiple

short sessions plus mentoring –

“Today’s career

entrants place

heavy emphasis

on personal

development,

so continuous

learning

opportunities

and career

progression

are vital”


Rich Mortimer,

Chief People Officer,

Egress Software Technologies

JUNE 2019


a high-touch approach that’s very

effective in developing both the

technical and softer management skills

that we need in our workforce.

Offering non-financial advantages

to employees is also an important

strategy for scale-up businesses

trying to appeal to today’s career

entrants. This includes personalized

development programmes but also

extends to the less tangible ‘experience’

that an energetic and flexible

work environment can offer.

By focusing on promoting the tech

sector to future employees, providing

opportunities for undergraduates and

developing our own STEM talent

within the business, tech companies

can put themselves in a much stronger

position to navigate the skills shortage,

as longer-term educational initiatives

also take effect.

65

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SUSTAINABILITY

66

Why we must invest

in today’s shared

transportation to

build the foundation

of tomorrow’s

smart mobility

CEO & co-founder of Zeelo, Sam Ryan,

explores why smart transportation is

a must for tomorrow’s cities

WRITTEN BY SAM RYAN

JUNE 2019


www.businesschief.com

67


SUSTAINABILITY

68

We’re living in an exciting time

for smart mobility. Buoyed by

recent developments in transformative

technologies, such as artificial

intelligence (AI), the Internet of Things

(IoT) and fifth-generation wireless

communications (5G), the vision of

fully-sophisticated smart mobility

seems closer than ever.

With one eye firmly fixed upon a future

where everyday processes and services

will become increasingly interconnected,

data-driven and autonomous, it’s hard

not to feel a sense of excitement at the

utopian ideal of a seamlessly integrated,

intelligent transport network and the

corollary benefits that such a system

will bring – to the economy, to passenger

safety, to the health and wellbeing of

both people and the natural environment.

But while a future-thinking perspective

is all well and good, it’s important to

remember that innovation cannot be

built on blue-sky thinking alone. While

future smart mobility will certainly

comprise an array of exciting forms of

transportation – wide scale electrification

of vehicle fleets, autonomous vehicles,

JUNE 2019


69

fully-connected travel experiences and

more besides – we must not lose sight

of the practical steps that need to be

taken in the here and now to step change

transportation for tomorrow. This starts

with a fundamental shift in attitudes to

travel – namely, away from the singular

and towards the shared.

AN INCONVENIENT TRUTH

For close to a century, the car has been

considered king when it comes to

convenient transportation. In that time,

demand has been both fulfilled and

fuelled by ever-cheaper models

produced on a hyper mass-market scale,

with private car ownership per-capita

rising year-on-year in virtually every

nation on earth. But while current rates

of ownership still far exceed the proportion

of one car for every two persons

across much of the developed world,

a report on disruptive automotive trends

from McKinsey & Company suggests

the beginnings of a global downward

trend in private car ownership. In the

face of growing global frustration at

excessive congestion on inter-city

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SUSTAINABILITY

“While future smart mobility will certainly

comprise an array of exciting forms of

transportation… we must not lose sight of

the practical steps that need to be taken”


Sam Ryan,

CEO & co-founder of Zeelo

70

highways and in busy urban centers,

and the resulting environmental

concerns that such high levels of traffic

bring, there is a growing acceptance

that private vehicles aren’t necessarily

the way that people will move in future.

Some are already beginning to break

the habits of a lifetime and transition

towards smarter shared mobility

services – though the rate at which this

is happening is perhaps slower than it

ought to be.

The problems faced by societies on

a global scale as a result of excessive

car ownership are intensifying. Congestion

is getting worse, costing an estimated

$305bn in economic impact in 2017

in the US alone, an increase of $10bn

from 2016. Excessive carbon emissions

from traffic are polluting our air to

dangerous levels, with the World Health

Organisation claiming that transport

accounted for almost a quarter of global

carbon dioxide emissions in 2010. In

addition, people are spending longer

than ever commuting to and from work,

regardless of how they travel, while the

overwhelming need for more car

parking spaces is limiting our ability to

expand and grow smarter cities in the

JUNE 2019


CLICK TO WATCH: ‘TRAVEL WITH ZEELO | YOUR COMMUTING,

FAN AND FESTIVAL TRAVEL SORTED’

71

way that we want to. The fact is that

while cars have long been seen as the

ultimate symbols of convenience, the

global overreliance on them means

that these efficacy benefits are not only

being outweighed by the negatives, but

are simply ceasing to exist altogether.

Solo travel is starting to seem less like

a route to convenience and more like

a roadblock.

SHARING THE SPOILS

The idea of travelling together is certainly

nothing new, but today’s innovative

shared mobility services are unlike the

communal travel models of old. Because

of technological innovations, shared

travel experiences are becoming better

than ever – though this, of course, means

that expectations are similarly increased.

An influx of well-funded ride-hailing

startups has disrupted the transport

market, while the level of on-demand

expediency offered across a range of

other industries has fundamentally raised

the bar on what customers expect from

the services they consume. People

want services that are made for them,

designed and developed around their

wants and needs – and they not only

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SUSTAINABILITY

72

want them immediately, but they expect

them to be affordable. For the status of

smart mobility to be truly accelerated,

propositions must meet the skyrocketing

demands that consumers have now

in terms of ease and efficiency.

To do this, we can start to focus on

a number of things. Firstly, transport

operators and providers can invest in

better onboard experiences to help

solve the wellbeing and productivity

challenges associated with stressful

journeys. By improving communal

travel experiences, whether for work or

leisure, operators give people the

chance of actually making the most of

their travel time. Secondly, transport

providers and planners must work

together to bridge the current gaps in

the network, as the current reliance on

personal car transportation is primarily

driven by a lack of genuinely compelling

alternatives. Gaps in the transport

network can be quickly and dynamically

filled by new, connected and data-driven

mobility services, which are a precursor

to the ultimate goal of seamlessly

connected travel experiences.

Finally, and where feasible, we must

look to interlink existing travel options,

“Because of

technological

innovations,

shared travel

experiences

are becoming

better than ever”


Sam Ryan,

CEO & co-founder of Zeelo

JUNE 2019


with a particular focus on solving the

challenge of the first and last mile. If

people cannot get exactly to where they

need to be via shared transport, they

will often begrudgingly turn back to the

private vehicles they are trying to leave

behind. Local municipalities and

regulators have a key part to play here,

as it is only by enabling the provision of

data between all parties in the overall

travel experience and ultimately beginning

to break down the existing barriers

between public and private transportation

that we will start to see real progress

made.

73

FACING THE FUTURE

Improving the performance and viability

of today’s shared travel options will lay

a bedrock upon which to start seriously

building the smarter travel networks

of the future. True smart mobility isn’t

here yet, and there are many hurdles to

overcome as we progress towards the

ultimate goal – including building the

infrastructure for electric and automated

vehicles, working out how these

next-generation vehicles will properly

interface with the human world and

solving synonymous challenges in other

sectors such as mobile networks. We

will eventually overcome all these hurdles,

and the dream will one day become

reality, but hurdles do, of course, come in

sequence. We cannot scale them all at

once, and without overcoming the

challenge of making shared mobility

more attractive than solo travel, we run

the risk of the remaining hurdles seeming

increasingly insurmountable.

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Captain

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Astronaut


CITY FOCUS

76

JUNE 2019


77

Business Chief explores San Francisco.

A centuries-old hub of innovation

that’s always looking to the future,

San Francisco is home to some of the

US’ leading tech giants and a thriving

SME and startup scene, attracting

over 24mn tourists each year

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CITY FOCUS | CHICAGO

SAN FRANCISCO

78

S

an Francisco is renowned as Northern

California’s center of commerce, finance

and culture, and this is far from a recent

accolade. In spite of how the city has hosted many

modern advancements in technology, its reputation

as a mecca for innovation goes back centuries.

San Francisco was named in the 1700s after

St Francis of Assisi, a notably astute and valiant

friar with a knack for opening minds and growing

ideas. Even in these early days, the city and its

people demonstrated a flair for energy, prolificity

and aspiration. The patron saint of merchants

and stowaways, among other things, could not

have been awarded a more apt namesake.

If there’s one thing San Francisco does, almost

by instinct, it’s reinvention. Even the devastating

earthquake and fire of 1906 couldn’t hold back

San Franciscans: the city was rebuilt at record

speed, to the specifications of its citizens, who

were eager to get back to their everyday lives.

Since the construction of San Francisco’s

now-famous façade, the city has been a magnet

for emerging trends and grassroots dreams,

welcoming new cultural waves every ten or twenty

years whilst still retaining its eclectic past.

JUNE 2019


79

©49ers.com

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CITY FOCUS | SAN FRANCISCO

80

©lucasfilm.com

©google.com

JUNE 2019


CLICK TO WATCH: ‘GLOBAL STARTUPS, ENTREPRENEURS

AND CHANGEMAKERS

81

NEW WAVES

Throughout its history, the city has

proven itself to be a nucleus of developing

culture: the Gold Rush of 1849

established a hardy banking and

finance district which was later paid

homage to by the San Francisco 49ers

football team; the beat generation of

the ‘50s established a keen literary

following that exists to this day; Haight

Ashbury served as commune to the

pilgrims of the late ‘60s hippie culture.

However, most recently, it has served

as the breeding ground for Silicon Valley.

A capital for both the ‘Dot Com Bubble’

and the social media whirlwind,

San Francisco is the stomping ground

of many an internet startup, and

a veritable hive for entrepreneurs of

all kinds. The Bay Area is home to the

USA’s largest concentration of venture

capital firms, with annual VC investments

averaging $6.5bn.

Today, San Francisco provides the

backdrop to hundreds of big businesses,

spanning every industry. From movie

wizards LucasFilm and Industrial Light

and Magic, to global food producers

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CITY FOCUS | SAN FRANCISCO

Del Monte and Diamond, businesses

flock to the city to make their mark.

While the giants of the social media

world, including WhatsApp, Twitter,

Facebook, Craigslist, and of course

Google, call San Francisco home, its

major role in the high-tech world does

not mean that it is reserved for the elite.

82

A STARTUP CITY

Notably, 66% of San Francisco’s

population is employed by the city’s

many independent businesses, giving

way to numerous coalitions and

networks aimed exclusively at supporting

and nurturing the city’s SMEs.

A thriving community of small and family

businesses provides the cultural

backbone of the city, with independent

clothing and furnishing boutiques,

cafes and restaurants, bookstores

and handmade gift shops attracting

both locals and visitors on a daily basis.

The torrential commercial

success that has come to

define San Francisco is far from

coincidental, thanks to its unique

combination of people and

places. Boasting upwards of

300 schools, and more than

JUNE 2019


35 colleges and universities in the Bay

Area alone, the city’s educational landscape

is vast, and its results clear:

the population is the second most

densely college-educated in the

country, with more than 344,000

graduates in residence. In turn, it is

an employment hotspot, with a diverse

service economy that spans almost

every industry, and an abundance of

work opportunities for citizens of all

backgrounds and trades.

In this way, San Francisco has

nurtured a delicate balance that sees

it function as a self-sustaining hub of

talent and innovation, giving locals the

tools they require to gain sellable skills,

which they can then put to use within

the city’s thriving economy.

83

TOURISM

Such is San Francisco’s worldwide

appeal to businesses and individuals

alike that tourism counts for a major

portion of the city’s income. Welcoming

upwards of 24mn visitors every

year, local companies have a steady

stream of custom in the form of

tourists, who are eager to experience

everything the city has to offer.

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CITY FOCUS | SAN FRANCISCO

$10bn

Generated from

tourism in 2018

66%

Employed by

independent

businesses

84

JUNE 2019


The likes of the Golden Gate Bridge

and Alcatraz Island prove endlessly

appealing to visitors hoping for an

insight to San Francisco’s rich history;

the bounty of parks, waterfronts and

picturesque landscapes – complete

with the trademark fog – offer plenty

of space for exploration and relaxation;

its famed nightlife and boutique

shopping ensure that good times are

had, and that the perfect souvenirs are

taken home. The promise of a ride in

the iconic cable cars, and the chance

to see the sights from favourite movies

and television shows, sees tourism

on the rise every year, with travellers

injecting almost $10bn into the local

economy in 2018 alone.

San Francisco continues to show

the societal and economic resilience

that it has developed a reputation for,

as a place that can’t be held back: not by

financial recessions, or natural disasters.

Whether as a place to visit, live, study

or go into business, San Francisco

shows no signs of slowing down.

85

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TOP 10

86

JUNE 2019


TOP 10

Largest

companies

in the US

87

The United States’ GDP has continued

its resurgence, re-establishing the

nation’s status as the world’s largest

economy. This article examines

the 10 largest companies leading the

world’s strongest economy

www.businesschief.com


TOP 10

88

10

General Motors

$157.3bn

General Motors is an automobile company that manufactures

a variety of vehicles from full-size trucks to electric cars under eight

different brands: Chevrolet, Buick, GMC, Cadillac, Holden, Baojun,

Wulin and Jiefang. Founded in 1908, the company sells automobiles

in 125 countries across 19,000 dealerships. The automotive leader

posted revenue exceeding US$157.3bn in 2018. Led by CEO

Mary T. Barra, General Motors plans to refocus its SUV and truck

options in order to return to profitability after the closure of plants

in the American Midwest.

JUNE 2019


89

09 AT&T

$160bn

Founded in 1983 and headquartered in Dallas, Texas, AT&T continues

to be the United States’ telecommunications leader with $160bn

in revenue and profits exceeding $29.4bn in the last financial year.

Led by CEO Randall L. Stephenson, the company managed to turn

a reduction in revenue into a 127% profit positive this year. With

services in all 50 states and a diverse employee base exceeding

254,000 people, AT&T shows no signs of slipping to the telecom

industry’s number two spot.

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TOP 10

90

08 Amazon

$177.8bn

Headed up by the world’s richest businessperson, Jeff Bezos, Amazon

– the world’s premier e-commerce marketplace, a leading tech company,

cloud services provider and manufacturer – achieved revenues

of $177.8bn in 2018. Amazon revenues and profits have surged by

more than 30% and 27% respectively. Overseeing the opening of its

new secondary headquarters near Arlington, Virginia, Amazon has

expanded its US operations significantly in 2018. The company employs

approximately 566,000 people worldwide. Based out of Seattle,

Amazon continues to grow its global presence in markets such as India.

JUNE 2019


ericsson.com/

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The 5G switch made easy.

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service assurance, Ericsson Dynamic Orchestration

simplifies operations, moving you closer to the

zero-touch experience.

This means greater savings and shorter time to

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TOP 10

92

07

CVS Health

$184.7bn

Following a series of major 2017 maneuvers including the acquisition

of Omnicare, CVS Health posted revenue of $184.7bn in 2018, with

profits topping $6.6bn. The Omnicare deal saw CVS take control of

Target’s clinics and pharmacies. Additionally, the company’s $69bn

merger with Aetna spells out the Rhode Island-based organization’s

goal to become a US financial leader. Led by CEO Larry J. Merlo,

CVS employs upwards of 203,000 people and has been ranked on

the Fortune 500 for nearly a quarter century. Its 4.1% revenue increase

is buoyed by a positive 24.5% profit shift.

JUNE 2019


93

06 McKesson

$198.5bn

Although this San Francisco wholesaler employs a relatively small

team of 64,500 people, it has enjoyed banner revenue of $198.5bn

as a pharmaceutical middleman. Led by CEO John H. Hammergren,

reliable distribution and logistics abilities helped increase revenue by

$3.1bn and profitability to $5bn. McKesson appears to be an industry

climber based on its profit numbers and a growth rate of nearly 125%.

www.businesschief.com


TOP 10

94

05

UnitedHealth Group

$201bn

With a year of high-profile mergers such as the CVS-Aetna deal

happening in the healthcare sector, UnitedHealth Group has made

more subtle moves on its way to posting revenues of $201bn and

$10.5bn in profits. Led by CEO David S. Wichmann, UnitedHealth

Group deftly acquired profit-drivers such as DaVita Medical Group.

DaVita added approximately 300 clinics to a corporate portfolio

already boasting a network of 30,000 physicians. Due to its keen

deal-making abilities and 260,000-strong employee base, the

Minnesota-based company enjoyed a 50.5% profit increase in 2018.

JUNE 2019


TOP 10

96

04 Apple

$229bn

This internationally recognized electronics leader earned $229bn in total

revenue while posting profits exceeding $48bn in 2018. Led by CEO

Timothy D. Cook, Apple continues to saturate the global market with

prized products and innovations. Based in Cupertino, California, Apple

employs approximately 123,000 people worldwide with smartphones

laying the foundation for its continued upward mobility. Apple Pay, facial

recognition technologies and Apple Music helped drive its 6.3% revenue

growth over the past year. Industry insiders see no signs of Apple’s

success slowing as it faces Samsung as a significant international rival.

JUNE 2019


97

03

Berkshire Hathaway

$242bn

Founded and led by renowned business veteran Warren E. Buffett,

Berkshire Hathaway slipped back from the number two spot this

year, despite posting revenue of more than $242bn and $44.9bn

in profits. Berkshire Hathaway experienced a profit uptick of 86.7%

in 2018, with savvy investments that shifted away from low S&P

performers such as IBM to stock champions like Apple. Considered

comparatively agile for a large corporation, Berkshire offset tough

hurricane-related payouts in recent years by brokering a worldrecord

$10.2bn policy with AIG.

www.businesschief.com


TOP 10

02

Exxon Mobil

$244bn

98

ExxonMobil is the largest publicly traded international

gas and oil company in the world. The company posted

revenues of more than $244bn, with profits exceeding

$19bn in 2018. Headquartered in Irving, Texas, Exxon

Mobil has seen revenue rise by 17.4% and profits have

skyrocketed by a staggering 151.%, due to the US oil

boom of recent years. Founded in 1859, when Edwin

Drake and Billy Smith drilled an oil well in Titusville,

Pennsylvania, Exxon Mobil is led by CEO Darren

W. Woods. The company employs upwards of 71,200

people and has made bold intentions to ramp up oil

production to 600,000 barrels per day by 2025.

Woods reportedly plans to invest $1bn in research

and development to combat carbon emissions.

JUNE 2019


www.businesschief.com

99


TOP 10

100

01 Walmart

$500bn

Consistently posting the world’s highest revenue,

Walmart topped $500bn in 2018 and once again

managed to outpace China’s top three state-owned

companies. What began as a mom-and-pop discount

store in 1962 has blossomed into an international retail

giant. Led by CEO C. Douglas McMillon, Walmart

operates through more than 11,000 brick and mortar

facilities in upwards of 28 countries and has a significant

online presence.The Arkansas-based company posted

profits of nearly $10bn while employing 2.3mn people.

Its growing e-commerce profitability and global expansions

have the organization tidying up its portfolio.

Walmart reportedly sold off underperforming assets in

Britain and shuttered 63 Sam’s Club facilities in the U.S.

On the growth side, Walmart is ramping up its footprint

in China and India among other locations.

JUNE 2019


www.businesschief.com

101


102

World

Vision:

procuring aid

for the world’s

most fragile

communities

WRITTEN BY

HARRY MENEAR

PRODUCED BY

DENITRA PRICE

JUNE 2019


www.businesschief.com

103


WORLD VISION

Tim Covell, Supply Chain

Director of World Vision’s Gift

in Kind operation, discusses

the ways in which his team

pushes itself to continually

provide aid more efficiently

to deprived communities

104

I

n 1947, Reverend Bob Pierce gave the last

five dollars from his pocket to help care for

an orphaned girl from China named White

Jade. Three years later, Pierce founded an organization

dedicated to helping children in dire need

of care around the world. Over the next 65 years,

World Vision has grown into a powerful and

tenacious non-governmental organisation (NGO),

striving for the elevation of deprived communities

out of poverty. Today, it works in nearly 100

countries and in just five years, together with

partners and donors, has impacted the lives of over

200mn vulnerable children by tackling the root

causes of poverty. “Our strategic vision is to step

into the most fragile countries, in the most fragile

contexts, to help people and communities out of

poverty,” says Tim Covell, Supply Chain Director

at World Vision. “World Vision is focused on the

twin pillars of humanitarian community development

and disaster relief. There are a host of

programs that work together under those two

JUNE 2019


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105


WORLD VISION

106

“We’ve grown

from 30,000

pallets to

84,000 pallets

over the last

three years”


Tim Covell,

Supply Chain Director,

GIK, World Vision

pillars, including sanitation, bringing

clean water to communities, health,

education, agriculture – helping a

community break the cycle of poverty

over the course of a 15-year program.”

Covell spent the two decades

preceding his move to World Vision

in the private healthcare technology

sector. “I loved the technology, loved

the teams – I really had no intention of

moving on,” he recalls. “As I was

thinking about my life, I realized it

was time to use those skills I’d learned

over the years serving in a humanitarian

organization.” In December 2016,

Covell jumped at the opportunity to

work for World Vision and has since

led the company’s Gift-in-Kind (GIK)

operation. “A GIK is where a corporation

will donate products instead of

cash,” he explains.

Every year, Covell and his three

major teams work tirelessly to process,

allocate and distribute tens of thousands

of pallets of donated goods –

ranging from bicycles and wheelchairs

to clothing and school supplies – to

some of the world’s most isolated and

fragile communities. “We’ve grown

from 30,000 pallets to 84,000 pallets

over the last three years,” Covell says.

JUNE 2019


CLICK TO WATCH: ‘WORLD VISION USA – REACH OUT WITH US’

107

“It would be impossible to handle that

degree of growth without continuous

improvement and change to the way

that we operate and drive our processes.”

Covell sat down with us to discuss

World Vision’s GIK operations, and the

ways in which he and his team push

themselves to continually improve and

better serve those in need.

Unlike a traditional procurement role,

the GIK supply chain operates in

response to donated items from large

corporations around the world. “We

position ourselves as a business

solution to corporations to deal with

excess inventory, reverse logistics,

or whatever their business challenge

might be,” says Covell. Dealing with this

influx of donations is the role of the first

of Covell’s three teams: Capacity &

Integration. The team interacts with

the various local operatives around the

world in order to establish what each

community needs to better progress

towards becoming self-sustaining.

“Each year they reach out to countries

around the world in order to understand

what kind of products they can use to

facilitate their ministry. Then we create a

global demand plan that predicts how

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WORLD VISION

108

JUNE 2019


£1.5bn+

Approximate

revenue

2002

Year founded

1,800

Approximate number

of employees

109

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WORLD VISION

110

many containers will ship to each

country and which product types they

need to contain,” explains Covell.

“In the world of GIK, as opposed to

the world of procurement, it’s distinct in

that we can’t predict 100% what kind of

product we’re going to get,” he

continues. “We start with a demand

plan and then, as we receive donations

over the course of the year, this team

will do their best to align the products

that were donated with the demand

that was placed on them by the various

countries.” While the GIK model

creates unique challenges in terms of

logistics, Covell notes that the donation

process makes for more efficient

“acquisition” power on behalf of World

Vision. “We want to make sure that every

product that we ship and spend freight

dollars on is going to help a community

and facilitate ministry in whatever

capacity it’s being used for,” he explains.

“GIK is a powerful element of the overall

ministry, because it’s such a magnifier.”

Covell’s department ensures the value

of donated items is efficiently distributed,

allowing for even more aid to be

provided to those who require it than

through traditional procurement NGO

JUNE 2019


practice. “For every dollar we spend

in freight, there’s almost $20 worth

of product that we’re shipping and

being able to bring into play for ministry

utilization,” he maintains.

The second team handles logistics,

both domestically and internationally.

Covell praises this team for its role

in overcoming geographic hurdles

during the ‘last-mile’ before delivery.

“This team has a very challenging role,

because the countries where we

operate typically have inadequate

infrastructure, and trying to get

products to communities in need

“Missionary Expediters

are a fantastic

asset to us in being

able to crack the

code of accessing

some of these very

challenging countries”


Tim Covell,

Supply Chain Director,

GIK, World Vision

111

EXECUTIVE PROFILE

Tim Covell, Supply Chain Director

Tim has a BS in Operations Research/Systems Analysis

from West Point Military Academy, and a MS in

Engineering Management from Milwaukee School of

Engineering. After some time serving in the Army and

then leading operations in transportation services, he

spent over 21 years at GE Healthcare in Milwaukee, WI.

During that time, he had experience in a variety of

roles from Mfg and Materials leadership to New

Product Development and Advanced Mfg Engineering.

He recently joined World Vision in Seattle, WA

to lead the GIK Supply Chain operation and has

been serving there for two and a half years.

www.businesschief.com


WORLD VISION

SERVING THOSE

WHO SERVE HIM

Over 60 years as the leading freight forwarder of Humanitarian Aid cargo. Expertise and

solutions for non-routine and non-repetitive routes. EDI capabilities, annual Logistics Forum.

WATCH OUR VIDEO VISIT OUR WEBSITE GET A QUOTE


113

“GIK is a powerful

element of the

overall ministry,

because it’s such

a magnifier”


Tim Covell,

Supply Chain Director,

GIK, World Vision

means you’re typically required to go

far off the beaten path.” In order to aid

in the delivery of supplies to the

farthest corners of the planet, World

Vision has established a decade-long

partnership with freight forwarding

business Missionary Expediters. “They

are a fantastic asset to us in being able

to crack the code of accessing some of

these very challenging countries,” says

Covell. “As an NGO, we’re obviously

looking to be very frugal, but a relationship

with a trusted partner that knows

its way around getting freight into

challenging areas is also essential.

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WORLD VISION

114

Missionary Expediters just ticks all the

boxes; we’re very pleased with our

partnership with them.”

The third team Covell oversees is

the GIK division’s distribution center in

Pittsburgh, Pennsylvania. “They have a

significant space there where we store

and then sort products. That’s where

the magic happens,” Covell explains.

The center uses numerous volunteers

to sort, package and dispatch items to

World Vision’s entire network. Given

that the workforce is largely made up

of volunteers, the Pittsburgh center is

the perfect demonstration of the need

for clear, unified processes in order to

produce consistent results. “One of the

things that I’m really passionate about

is having good documentation, as well

as work instructions that really

establish a foundation for what we do

and how we do it. Every day you have a

different group coming in, so we need

to have a standard mechanism,” says

Covell. “Having a consistent process is

really the foundation for continuous

improvement. If we’re all working the

same way and with the same output,

we can build upon that platform to

create and implement changes and

then improve our working structure;

JUNE 2019


www.businesschief.com

115


WORLD VISION

116

JUNE 2019


WORLD VISION

IN 2017

• Treated 118,000 children

for acute malnutrition

• Distributed over

10.9mn malaria treated

mosquito nets

• Responded to 170

emergencies in 56 countries

• Trained over 58,000

teachers

• Provided more than 1.4mn

small loans

• Sponsored over 3mn

childrent.

117

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WORLD VISION

118

“For every dollar

we spend in freight,

there’s almost

$20 of product

that we’re shipping

and being able to

bring into play for

ministry utilization”


Tim Covell,

Supply Chain Director, GIK, World Vision

so process control documentation

creates the foundation for future

continuous improvement.”

Continuous consistent improvement

is reliant on clear communication and

coordination, and Covell stresses that

technological advancements over the

past decade have been essential to

that process. “Recently we invested in

the Microsoft Dynamics Enterprise

Resource Planning system,” he says.

“It’s been a powerful tool to be able to

synchronize different portions of the

team, in the US and internationally.”

JUNE 2019


119

Covell describes this, along with a new

Transportation Management System,

as “a real game-changer”. “Being able

to manage large donors, having the

transparency and the communication

efficiency between the logistics teams

and the various warehouses around

the country, has been a real asset,”

he reflects.

Looking to the future, the GIK

operation has cause for celebration.

“In June, we’ll be shipping our 5,000th

container,” Covell says with pride. The

project is far from over though, and the

GIK team will continue to leverage every

tool at its disposal in order to continually

improve its ability to deliver vital supplies

to improve the quality of life of the

people who need it most. “Our journey

ahead is continuing to figure out how to

be good stewards of the freight dollars

that are donated to us and support

World Vision’s ministry operations.”

www.businesschief.com


120

Logix Federal

Credit Union’s

digital

transformation

driven by

customer

experience

WRITTEN BY

HARRY MENEAR

PRODUCED BY

ANDY TURNER

JUNE 2019


www.businesschief.com

121


LOGIX FEDERAL CREDIT UNION

Logix Federal Credit Union

is harnessing the power of

digital transformation to make

members feel welcomed,

significant and engaged

122

F

or firms in the grips of nosediving profits,

disgruntled customers and unsustainable

business environments, the steps to

effect positive change would be as obvious and

simple as flipping a switch. However, for a credit

union, which has grown its member base by 89%

since 2011, has in excess of US$6bn in assets, and

was named the number one credit union in California

by Forbes Magazine, the next step might not be

so obvious. For Logix Federal Credit Union though,

an insightful and experienced leadership team,

dedicated to intelligently implementing the latest

technology while taking full advantage of a highly

engaged workforce, is poised and ready for the

future. “We are fortunate in that our members

already love us,” says Edward Chuang, Executive

Vice President and Chief Information Officer (CIO)

at Logix. “The important thing is not to rest on our

laurels, because we know that the banking industry

is changing, and we know that consumer expectations

are changing, too. So, ‘how do we stay number

one?’ is really the challenge we’re facing.”

JUNE 2019


123

© Photos Jennifer Kukawski

www.businesschief.com


LOGIX FEDERAL CREDIT UNION

“We have an

interesting problem

to solve, which is

that our members

already love us”

124


Edward Chuang,

EVP & CIO, Logix

In the constant race to stay relevant

and with a desire to relentlessly pursue

innovation, Logix is undergoing a

top-to-bottom transformation. “Logix is

going through a very exciting transformation

right now, and that began with

Ana Fonseca taking the helm as the

new CEO of Logix in January of this

year,” says Chuang.

A veteran of the finance sector, with

27 years under her belt at Logix,

Fonseca stepped into the role of the

company’s President and CEO in

January 2019. Striking an ever-present

balance between the adoption of new

JUNE 2019


CLICK TO WATCH: ‘HONORING THE PAST, LOOKING TO THE FUTURE.’

125

technologies and managing the

experience of both members and

employees, Fonseca is excited to apply

Logix’s award-winning customer

service to its online presence. “We

already have a really great member

experience, especially in our branches,

and so we’re driven by wanting to make

our members feel welcomed, significant,

and engaged,” she explains.

“What we’re trying to do is take that

feeling and replicate it across other

channels: on our website, within online

banking, and throughout our mobile app.”

Chuang adds, “Bundled in this

transformation are a number of

initiatives that are really poised to take

us to a whole new level. We call it Logix

2.0 and it includes a brand new

headquarters building about 30 miles

north of our current location, a

state-of-the-art data center built from

the ground up, and taking one of our

core strategic principles – consistently

excellent member experience – to

another level. We’re aiming to address

all of the ways we serve our members

and make those interactions seamless

and easy for them.”

Founded in 1937, Logix Federal Credit

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2019: It’s a digital banking “now or never”

Leaders of financial institutions are in the fight of their lives. Giant

banks are investing hundreds of millions of dollars to perfect digital

banking experiences and stealing market share. In short, the competitive

pressures for customers and deposits are creating a “now

or never” moment in digital banking.

These moments have often produced some of the greatest innovations

in American business. If played right, 2019 could be the year

that smaller banks and credit unions reclaim their rightful leadership

role as the default choice for financial transactions and services.

In particular, there are three key advantages that these financial

institutions can – and should – leverage in order to attract and retain

customers through digital banking: personalized digital service,

the power of partnerships, and organizational agility.

Be Number 1 in Personalized Digital Service

30 years ago, local banks and credit unions dominated the market

because of convenience, ease of access, and personal relationships.

The local branch was the most convenient option at the time. But

as technology ushered in new and faster alternatives, consumers

gravitated to efficiency and convenience. Digital access gave

mega banks and fintechs the upper hand in terms of convenience

and ease.

For this and many other reasons, banks and credit unions must focus

on digital transformation. The authentic human touch remains

a fond memory for many consumers, and most Americans prefer

to bank locally; they just want an efficient digital experience.

Regional and mid-sized banks and credit unions should focus on

amplifying their unique customer brand across all channels. A

great example of deploying digital to create closer connections

is the “go-to” solution by Umpqua Bank. Their mobile app allows

customers to select a personal digital banker and have secure,

one-to-one conversations with their banker at any time through a

familiar chat-like interface. Your personal digital banker knows who

you are, understands you as a consumer and stands ready to assist

you through your financial journey in life.

Don’t Out-Spend Fintech or Banking Giants, Out-Partner Them

Consumer demand has put massive pressure on banks and credit

unions to innovate. As financial institutions first began to evolve,

the vast majority of them took the safe road into digital banking by

choosing the pre-packaged solutions offered by core providers.

Their apps looked identical to the competing banks, but it was the

low-risk and cost-efficient choice at the time.

The legacy core processing providers simply weren’t orientated to

create differentiated solutions for each financial institutions; they

were focused on the opposite model of creating a simple app they

could easily copy and paste for every bank and credit union. As

smaller financial institutions experimented with the product sold

by their legacy core providers, giant banks and fintechs gained

further ground by innovating and siphoning off customers.

In summary, in 2019, make an honest appraisal of your offering.

Determine if you have the expertise or bandwidth in-house for true

digital transformation. Typically, it’s only the mega-banks that have

their own fleet of engineers, but you can compete effectively by

teaming up with proven outside experts with a track record of

success in digital banking.

Choosing the right strategic partner is immediately accretive to

your bottom line. You instantly ingest their capabilities and deploy

their expertise as your own. The right choice can put you ahead

of your competition, increase efficiency, and pay for itself with

greater assets under management.

Leverage Agility and Your Unique Brand

It’s not easy to transform a financial institution into a technology

company, but although multi-national banks have unlimited resources

and access to talent, smaller organizations have a distinct

advantage: They can more nimbly make decisions, test ideas, and

execute changes.

There is another advantage to being a smaller bank or credit union:

As the pace of innovation increases, there is a growing consumer

hunger for brands that don’t innovate themselves into a brand drift.

Successful financial institutions maintain their warmth, accessibility,

and customer service throughout all channels. Digital banking

should amplify your organization’s identity while delivering convenience

and efficiency.

True digital transformation is a corporate culture shift. Leadership

must be firmly on board with both feet. Project engineers must

remain focused on the end-user’s digital experience. Look at

everything through this prism and audit your process to ensure

it results in your organization becoming easier to transact with

– without drifting away from the core brand that attracted your customers

in the first place.

As 2019 unfolds, follow the “digital banking hockey puck” to where

it’s going, not where it is. Anticipate your customers’ needs and

deliver solutions. Your customers’ digital banking experience will

be directly tied to your organization’s overall performance.

By Jeffery Kendall;

Executive Vice

President & General

Manager, Kony DBX


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1.949.922.6773

Union is the largest credit union in Los

Angeles County and the seventh largest

in the state. It provides banking services

to over 202,000 members, access to

over 30,000 surcharge-free ATMs, and

operates 17 branches in Los Angeles

and Ventura counties. Logix has

outgrown its current headquarters building

in Burbank as its employee count

exceeds 725. “We offer nearly all of the

banking services that any large bank

would, but we’re different. We’re here to

help members thrive, not to increase

shareholder profits,” says Chuang.

As Logix’s CIO, Chuang’s role is

closely tied to keeping the company

abreast of the banking ecosystem’s

development. “In the last 10 years,

digital banking has gone through

multiple miniature evolutions as digital

platforms have matured,” he says.

“Last year we established a new data

analytics and business intelligence

department. That group is chartered

with pulling together numerous data

sources, whether it’s mortgage lending

or payments transactions, and creating

useful insights about our members and

our employees.” Logix’s commitment

to harnessing the power of data is

JUNE 2019


enhanced by the construction of its

new data center. “We’re using some out

of the box products from key strategic

partners, but ultimately the data lake

we’re creating is specifically for us with

our own data and only for our usage,”

explains Chuang. Logix recently

implemented an Advanced Reporting

for Credit Unions (ARCU) system

powered by Jack Henry. “It allows us to

create an advanced reporting database;

we take a daily snapshot of all of

our transaction data from our core and

the analytics team goes to town on it,”

says Chuang. “They pump our data into

a number of AI or machine learningenabled

products to derive useful

reports of member behavior.”

Adopting new technology to better

gather and utilize data is key to Logix

improving its member experience even

further. “It’s all about helping our

members thrive,” reiterates Fonseca.

“We want to provide them with value and

make sure we’re offering products that

make sense for them. This data is going

to help us understand what life stage

they’re in and what products make

129

EXECUTIVE PROFILE

Ana Fonseca, President & CEO

Ana Fonseca is the President and Chief Executive

Officer for Logix Federal Credit Union in Burbank, CA,

which serves over 202,000 members and has $6.2bn

in assets. Prior to becoming CEO, Ana served as

the organization’s Chief Operating Officer and

before that, served as its Chief Financial Officer.

Ana holds an MBA from The Graziadio School

of Business and Management at Pepperdine

University and completed the Executive

Program at Stanford University’s Graduate

School of Business.

www.businesschief.com


LOGIX FEDERAL CREDIT UNION

EXECUTIVE PROFILE

130

Edward Chuang, EVP & CIO

Edward Chuang is a highly innovative and recognized

senior technology executive and a veteran in leading

technology teams and digital transformation for some of

the largest financial institutions in the world. Edward

currently serves as Chief Information Officer at Logix

Federal Credit Union and is responsible for strategy and

execution of the company’s information technology

platform and project management office to support

growth, innovation, and improving the member

experience. Previously, Edward was head of Online and

Mobile banking technology at Navy Federal Credit

Union, the world’s largest credit union with over $103

billion in assets, where his team created award

winning applications that serviced over 8

million members across the globe. Edward

holds a Master’s degree and a Bachelor’s

Degree with Honors from Carnegie Mellon

University and a Post Master’s degree in

Information Technology and

Telecommunications from Johns Hopkins

University.

“We truly aim to provide the best

possible banking experience

that our members can have”

JUNE 2019


CLICK TO WATCH: ‘THE NEW LOGIX MOBILE APP’

131

sense for them. For example, if we see

they’re shopping at a home improvement

store, we might be able to offer

them a home equity line of credit,

because they’re probably working on

home improvements or maybe a major

remodel.” With the data landscape in

constant flux and exponential expansion,

both Fonseca and Chuang

recognize its importance to the

continued success of Logix. “Data will

be the key to winning, and if we don’t

leverage it, that will be our downfall. This

realization is really informing how we’re

using data,” notes Chuang.

Logix employs data gathering and

analysis not only to provide its members

with a sublime member experience,

but also to help foster and

maintain a positive internal atmosphere.

“Even though we’ve gone

through a lot of changes, one thing

that’s very important to us is that we

preserve the culture we’ve cultivated

over the past several years. I would say

that one of the things that’s really

noticeable about our culture to new

employees is how fun it is to work here,”

says Fonseca. “From dress-up days on

Halloween to annual award ceremo-

www.businesschief.com


LOGIX FEDERAL CREDIT UNION

132

“We’re driven by

wanting to make

our members

feel welcomed,

significant

and engaged”


Ana Fonseca,

President & CEO, Logix

nies at venues like the Los Angeles

Zoo, Logix ensures that the happiness

of its employees is maintained.”

Logix’s leadership team also

recognizes that maintaining positive

and open relationships with its

employees is a powerful tool for

improving business strategy. “The

other important aspect of our culture is

that we foster open communication,”

adds Fonseca. “Our employees have

access to everyone on our senior

management team, and they are

encouraged to submit ideas for things

JUNE 2019


133

that we can do better for our members

and for employees.”

Looking to the future, Chuang is

certain that the future of Logix is in

safe hands. “With the visionary

leadership of Ana, I think the willingness

to transform is something that no

strategy can spell out on paper,” he

says. Fonseca and the Logix team are

ready to enter 2020 with a more

seamless digital experience for their

members, a constant dedication to

enhancing Logix’s technological

capabilities – with solutions ranging

from automation to intelligent ATMs

and teller-less branches – and a

continuing mission to make the

members of California’s leading credit

union continue to feel welcomed,

significant and engaged. Chuang

concludes: “We truly aim to provide the

best possible banking experience that

our members can have.”

www.businesschief.com


134

DUNLOP BOOTS:

MANUFACTURING

THE FUTURE

OF PROTECTIVE

FOOTWEAR

WRITTEN BY

HARRY MENEAR

PRODUCED BY

TOM VENTURO

JUNE 2019


www.businesschief.com

135


DUNLOP PROTECTIVE FOOTWEAR

Mary Steinebrunner, Managing

Director USA, and Colin Clark,

Director of Marketing at Dunlop

Protective Footwear discuss

the past, present and future of

a company focused on digital

transformation, industry-leading

products and staying ahead

of the curve

136

I

t’s rare to find a manufacturing company

born in the first half of the 20th century

with the vibrant enthusiasm of a Silicon

Valley startup hunting for its first investment.

However, that insatiable desire to embrace the

future, invest in people and product, and never

stand still is alive and well at the heart of Dunlop

Protective Footwear’s vision. “We’re 80 years old

and we’re just getting started,” enthuses Colin

Clark, Director of Marketing, USA, who joined the

company in 2016. Mary Steinebrunner, the company’s

Managing Director USA, and a 20 year

veteran of the protective footwear industry, agrees:

“The key is to evolve to where the market is going.

Had we stayed still, we probably wouldn’t be here

today, but our ability to be nimble and train our team

members to be flexible with regard to the market

and technology, and to build products the market

desires, has allowed us to grow with the market.”

JUNE 2019


www.businesschief.com

137


DUNLOP PROTECTIVE FOOTWEAR

138

“We make

everything

in house,

all the way

down to our

PVC pellets”


Colin Clark,

Marketing Director, USA,

Dunlop Protective Footwear

Steinebrunner joined PVC footwear

manufacturer OnGuard Industries in

2000. “Three years ago, we were

acquired by Dunlop Protective

Footwear and it has been the best

home for this business. We were the

US leader in manufacturing protective

footwear for the US and Dunlop is the

global leader in that market. So, the

combined business truly became a

global powerhouse.” The acquisition of

the USA by Dunlop brought access to

Dunlop’s proprietary material Purofort®,

an expanded innovative product

line, designed specifically for end

users and markets that the USA

business had never been able to

access before. Allard Bijlsma Dunlop

CEO “the USA business had an

extremely strong manufacturing

heritage, and a robust distribution

network in the food processing and

industry segments built out. We knew

we could expand the core business

with our investment in the Made in USA

Purofort® FoodPro and reach new

consumers in new markets with our

best in class Purofort Product range.”

Clark adds that “I joined right after

Dunlop purchased OnGuard. I was

really excited about that place in time,

JUNE 2019


CLICK TO WATCH: ‘DUNLOP COMPANY MOVIE 2019

139

because we got to bring the powerful

Dunlop brand to the USA, as well as

relaunch our product line and go-tomarket

strategy. It was, and has been,

a really exciting entrepreneurial time.”

Dunlop Protective Footwear is a

global manufacturer of work boots

serving multiple markets and verticals

around the globe. The company’s head

offices are located in Raalte, The

Netherlands, and its second production

plant is based in Leiria, Portugal.

At the company’s US headquarters in

Havre De Grace, Maryland, Dunlop is

experiencing a period of significant,

transformative growth. “We’re growing

in the double digits every year and

continually evolving in every facet of

the business,” says Clark who, along

with Steinebrunner, sat down to

discuss a transformation that is both

internal and external. Powered by the

company’s global expertise, proficiency

and dedication to innovation, and

proprietary technology, Dunlop is

creating products that are second to

none. Behind the scenes, the company

is embarking on a digital transformation

to reshape its manufacturing

process to remain ahead of the curve,

www.businesschief.com


DUNLOP PROTECTIVE FOOTWEAR

140

“We’ve

gone from

being very

anecdotal

to being

analytical”


Mary Steinebrunner,

Managing Director, USA,

Dunlop Protective Footwear

and tackling change management

head on, every step of the way.

As manufacturers of protective

footwear for almost every conceivable

industry, Dunlop’s product touches

workers in a wide array of industries

across more than 50 countries. “You

don’t generally look at a PVC or

polyurethane boot as a market driver,

but it truly is because we provide the

makers and the doers of the world with

innovative products to tackle the

issues they face each day,” explains

Steinebrunner. “The people that make

our oil, our power, our food - we reach

every one of them. So, in turn, we’re

affecting every segment of those

industries.” The acquisition of On-

Guard by Dunlop infused new energy

into the company with the investment

of the Purofort® manufacturing

process into the USA plant. This

factory inside of the factory creates

Dunlop’s proprietary, lightweight,

thermally insulating material called

Purofort. Developed in 1980, Purofort

allows Dunlop to twin safety with

comfort, in industries where the choice

JUNE 2019


141

of one often means sacrificing the

other. “With Purofort technology,

we can now build a boot that is lighter,

wears better and fits better,” says

Steinebrunner. “So, in an industry

where people traditionally don’t want

to wear protective footwear, because

it’s heavy, hot and uncomfortable, we

can build something that workers

actually want to wear.”

The addition of a Purofort manufacturing

machine to the Maryland plant

“allowed us to have a good, better, best

assortment of products, and expand

our reach,” says Clark. “Now, we have

products for segments we’d never

reached before: Agriculture & Fishery,

Food processing, Industry and the Oil,

Gas & Mining sector.” Purofort

innovations have allowed Dunlop to

continue to grow into verticals that

the company has served for decades.

“We’ve traditionally been a market

leader in food processing,” says Clark.

“By introducing our Purofort FoodPro

boot to that space, we’ve seen our

numbers almost double every single

year in our most saturated market.”

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YOU LONG-LASTING COMFORT’

143

Growth across old and new markets

has been so pronounced that Dunlop

is adding a second Purofort machine

at its Maryland facility, with space for

a third, in order to support further

growth and expansion into Canada

and Mexico. “We want to have a full

North American reach for product

and manufacturing to better serve our

customers,” says Steinebrunner.

At the heart of Dunlop’s mission to

create superior products is its commitment

to an in-house manufacturing

supply chain based close to the

markets that they serve “We make

everything in house, all the way down

to our PVC pellets,” says Clark. “A

recent example of that are our ‘made

in the USA’ Chesapeake Boot, which

is our entry level, PVC, black boot for

general use. Other manufacturers

import their version of this product

from China, Mexico, etc; we were able

to keep manufacturing here in the US,

while making an innovative, lighter boot

that we developed alongside our global

innovation team, tested and put

through its paces in our world class

www.businesschief.com


DUNLOP PROTECTIVE FOOTWEAR

144

Portugal plant.” Steinebrunner recalls

that “we made the Chesapeake more

protective, better looking and as

efficient as possible to produce. The

finished product is phenomenal and a

credit to the collaborative efforts of a

global team that believes in creating

products worthy of the flying Dunlop D.”

Dunlop’s human expertise and drive

to succeed is being further enabled by

a cultural, methodological and

technological shift behind the scenes.

Flexibility and enhanced process

transparency, as a result of the

company embracing new technologies,

are helping to propel Dunlop into its

next stage of development. “We’ve

gone from being very anecdotal to

being analytical,” Steinebrunner

explains. The company is harnessing

the power of digitalization, both

externally to reinvent its customer and

supplier interactions, and internally.

Measuring efficiency, building preventative

maintenance into the business

strategy, and using technology to

enable the company’s human resources

are, according to Steinebrunner, key

to Dunlop’s transformation. “In the last

two years, we’ve come so far,” she says.

JUNE 2019


“The Dunlop

SnugBoot

is the most

comfortable

boot I have

ever worn”


Colin Clark,

Marketing Director, USA,

Dunlop Protective Footwear

Dunlop is managing the change in its

organization by not only digitizing its

processes, but taking the data

gathered from those processes and

democratizing it in order to empower

its employees. “Our new ERP system

helps from a sales projection planning

standpoint to an MRP planning

standpoint to what pellets we’re

making in what machines,” lists Clark.

“We’ve really advanced, from analog,

pen and paper, hallway conversations

to having this ERP systems help give us

the tools to help fuel our growth.”

Steinebrunner notes that “It makes

the data more accessible and visible.

We have regular meetings so that we

can take staff input and use it to drive

efficiency. We’re merging our human

capital along with all the technology

and all the innovative capital that we

are putting into the business.” Both

Steinebrunner and Clark are thrilled

at the employee response to Dunlop’s

transformation. “We have employees

whose mothers, uncles, grandmothers

have all worked here. For them to be

enthusiastic about where this business

is going, it’s amazing. To see a 30 year

employee come in and say, ‘hey this

145

www.businesschief.com


DUNLOP PROTECTIVE FOOTWEAR

COMPANY FACTS

146

• Purofort is the unique

Dunlop material with

millions of evenly distributed

air pockets making it

lightweight and thermally

insulating, plus a crosslinked

structure that

provides flexibility and

strength. Developed by

Dunlop in 1980, Purofort

boots are up to 35% lighter

than PVC, rubber or PU

boots; prevent heat loss and

provide thermal insulation

down to -20 Degrees Celsius;

and are stronger and more

flexible than competing

materials.

JUNE 2019


what we need to do next.`It’s just

intoxicating,” says Steinebrunner.

Looking to the future, Dunlop is

looking to expand its business model,

shifting to a more omnichannel

approach to customer service and

digitizing more heavily. The next step

on its journey that is most exciting to

Steinebrunner and Clark, however, is

the company’s entrance into the retail

footwear market. Scheduled for launch

later in 2019, the Dunlop SnugBoot

“is the most comfortable boot I have

ever worn,” confirms Clark. Dunlop’s

future, both internally and externally, is

set to be an exciting one. Steinebrunner

concludes: “We’re always looking to

2022 and beyond. In the US, we’ll

double our business’ size by entering

new channels, by leveraging talent and

an omnichannel approach, and by

reaching new markets and customers

with new products and technology.”

147

www.businesschief.com


148

Deloitte: delivering

strategic sourcing

transformation

empowered by

digital analytics

WRITTEN BY

OLIVIA MINNOCK

PRODUCED BY

ARRON RAMPLING

JUNE 2019


www.businesschief.com

149


DELOITTE

With procurement increasingly

gaining a seat at the executive

table, Deloitte consultant Natascha

Schijven says having the right

digital analytics and diverse talent

in place is key to transforming

sourcing operations

150

M

anagement consultant Natascha

Schijven has witnessed the changing

procurement landscape for around

two decades. Now a Partner for Supply Chain

& Manufacturing Operations at Deloitte, she began

her career in manufacturing for a multinational

packaging company in the Netherlands. Even

though the local manufacturing environment was

exciting, Natascha wanted to make use of a

background in international business and language

studies. “I wanted to make sure I would work

on projects that were more complex, spanned

geographies and leveraged my languages and

international business background so I moved from

manufacturing into strategic sourcing,” she recalls.

Schijven sourced direct materials in packaging

across Europe and indirects for a global specialty

chemicals company, but started to feel her work

lacked challenge. “At some point I got bored

with the repetitive nature of my nine to five job

and wanted to find something more challenging

JUNE 2019


www.businesschief.com

151


DELOITTE

152

“Next generation

sourcing managers

need to be trained

in advanced

analytics and be

knowledgeable

of the technologies

empowering them”


Natascha Schijven,

Partner, Supply Chain & Manufacturing

Operations, Deloitte

and versatile”, she says. Schijven

moved into consultancy, first with A.T.

Kearney and then for Deloitte. Having

previously worked with consultants

herself, she was ideally placed to

understand the situation from both

sides. “Having been on the receiving

end, working with several consulting

firms, allowed me to understand where

the client is coming from. It’s a very

different world as a client: you effectively

have your own day job, plus then

all of a sudden you need to manage

a consultant coming in.”

Assisting some of the world’s largest

organizations in Fast Moving Consumer

Goods, Retail, Pharmaceuticals and

Industrial Products to transform the

way they source and manage costs,

Schijven argues that what makes

Deloitte different is the way it works

as a true partner for its clients. “We are

there hands on from A to Z. We’re in

the trenches with you – we’re not here

to tell you how to do something and

then leave you to go ahead and do it,”

she explains. The global consultancy’s

methodology, and indeed Schijven’s

experience to put herself in the clients’

shoes, has proven to resonate well with

clients the world over. “It comes down

JUNE 2019


NATASCHA SCHIJVEN, PARTNER SUPPLY CHAIN & MANUFACTURING

OPERATIONS AT DELOITTE. ‘DELOITTE AS A PARTNER’

153

to being authentic and truthful, speaking

from one human to another. That

helps clients not to just see consultants

as guns for hire, or cyborgs coming

to take jobs away from them.”

Deloitte, Schijven adds, is more than

just consulting. “We have a variety of

critical business lines. We have breadth

and depth. We have a lot of technology

empowering us and a bench strength

in advanced, digital analytics that I had

previously never come across. Deloitte

has a whole practice built around

digital and digital disruption.”

Indeed, Deloitte’s AI practice,

Deloitte Omnia, is armed with next

generation, disruptive solutions from

Internet of Things (IoT) to Deep

Learning, Machine Learning solutions

and many more. “We can offer clients

ways to take cost out through strategic

sourcing sustainably – to accelerate

time to value and truly optimize on

total cost of ownership for our clients

– across departmental silos. After

we’ve transformed an organization,

Procurement is no longer just seen

as a cost cutter.”

www.businesschief.com


DELOITTE

154

NATASCHA SCHIJVEN, PARTNER SUPPLY CHAIN & MANUFACTURING

OPERATIONS AT DELOITTE ‘DIVERSITY OF THOUGHT’

PROCUREMENT CHANGES

As industries become more competitive,

the way procurement is viewed is

indeed shifting, with businesses

understanding a greater focus on cost

management is needed in order to

succeed: “Focus is very much shifting

in the CFO space toward cost control.

The world is rapidly becoming more

competitive and there’s a lot of

disruption fueling mergers and

acquisitions. If you don’t get ahead

of that, you’re not going to be able

to monetize. You’ll miss the boat.

“Strategic procurement has always

been one of the best ways in which you

can rapidly control costs,” Schijven

continues. “We’re seeing a shift from

not having to worry about cost to that

being the principle concern – there is

less flying below the radar in high-margin

environments, so you need to get it

under control. The past decade or so

has seen the shift from procurement

being a back office, cost-cutting

function, to a function that truly delivers

value cross-functionally and increasingly

has a seat at the C-level table.”

As the function shifts however, there

will inevitably be those organizations

JUNE 2019


which are further ahead, and the

landscape has yet to smooth out and

catch up. “It’s a journey,” says Schijven.

“That’s what makes this space so

interesting. You’re always pushing the

envelope because you’re working with

clients who are starting out in the

‘beginner’ phase, as well as clients who

are absolute leaders in the space – you

have to have the exhaustive content

and disruptive innovation capability to

show both of them how to reach the

next level, and get the next doubledigit

cost reduction or multiple base

point value enhancement.”

WHAT IS DIGITAL?

A key challenge Schijven sees procurement

professionals face is the shift to

digital, with one simple question on

their minds: “What is digital? What is

this all about? I’m hearing this buzzword

flying around, but I don’t have a clue

what it is. I’m Googling it and getting

around 400 definitions.” According to

the consultant: “The key challenges are

really around how to capitalize on a

world where everything is connected

through different levels of technology,

as well as understanding advanced

analytics that allow you to harness

155

EXECUTIVE PROFILE

Natascha Schijven is a senior leader with deep

experience in large scale cost and strategic

procurement transformation across food & beverage,

retail, pharma, chemicals and oil & gas in Europe,

North America and Asia. She was recently recognized

by SCMA as one of Canada’s 100 Influential Women in

Supply Chain. Schijven is considered a thought leader

in analytics-empowered/digital cost transformation

and is an experienced panelist and public speaker.

She is passionate about enhancing workplace diversity,

mentoring and advancing women leaders. Schijven

currently leads the Direct Materials Management

offering for Deloitte Canada.

www.businesschief.com


DELOITTE

156

JUNE 2019


$43.2bn

Approximate

revenue

1845

Year founded

286,200

Approximate number

of employees

157

www.businesschief.com


“Strategic

procurement

has always been

one of the best

ways in which

you can rapidly

control costs”


Natascha Schijven,

Partner, Supply Chain & Manufacturing

Operations, Deloitte

and effectively deduce the core gist

required for more accurate and

accelerated decision making. That’s

what’s needed to survive in the new

Industry 4.0 era.”

For Schijven, then, what does digital

mean? “To me, it’s all about the

conversion of data into key ‘nuggets’ of

information, so inherently it’s all about

the analytics, harnessing the ability to

have everything that used to be on

paper digitized, empowering centralized

cross-functional analysis. It means

leveraging Big Data technology and

having the latest advanced analytics

get to work on all those petabytes of

data to inform short-, mid-, and

long-term sourcing decisions. This is

how we help produce insights clients

never dreamt were possible before,

because all the data that was decentralized

across hundreds of laptops,

different enterprise systems and

thousands of bits of paper is now in

one centralized database or stack.

That’s what it means to me.”

Looking at strategic sourcing more

specifically, digital means “having

everything from your PDF material and

artwork specs, through to your policies,

contractual and operational procurement

data centralized”. “Putting

statistical, optimization and other

digital analytics to work within a

rigorous strategic sourcing process on

all that combined to rapidly produce

exhaustive insights human intelligence

never could – that’s how I would explain

the benefits of analytics empowered

strategic sourcing to a CPO,” says

Schijven. In order to effectively

capitalize on digital in strategic

sourcing, a key priority is to have the

right talent in place. “There’s a big shift

in capability; the skillset required to

extract value is vastly different. Next

generation sourcing managers need

to be trained in advanced analytics and

159

www.businesschief.com


DELOITTE

be knowledgeable of the technologies

empowering them. This is key next to

other critical enablers such as

transformation enabling governance

and change management.”

160

DIVERSITY OF THOUGHT

When it comes to getting the right

talent, Schijven comments: “I would

advise organizations to look broadly,

step outside of your comfort zone.

What has surprised me is that it’s not

always necessarily folks with a

business or engineering background

who’ve got the right stuff. I’ve been

pleasantly surprised by people with

completely diverse backgrounds,

from microbiologists to historians.

Have a healthy mix of diversely thinking

people,” she advises.

Diversity of personal experience,

such as having a mix of genders, will

also be useful. “Women and men see

things inherently differently – we’re just

wired differently. Again, in the end what

you should strive for is diversity of

thought which is fueled by diversity

across multiple dimensions; different

genders, racial backgrounds, educational

backgrounds, sexual orientations,

etc. People who have walked life

JUNE 2019


differently have different ways of

viewing problems and coming up with

solutions. You will not be able to build

a high-performing team equipped

to excel in the digital age with only

engineers or only business folks. We’re

all myopic because we’re all ‘molded’

to be who we are today through our

gender, culture, upbringing, education

and so on. Businesses should ensure

a diverse pack if they don’t wish to keep

coming up with the same answers.”

A WELL-ROUNDED ECOSYSTEM

Another way Deloitte achieves diversity

of thought is by leveraging its network

of carefully selected partners – and

this comes down to Schijven’s key

philosophy of being authentic.

“We’re never going to be everything

to everybody,” she says. “If you try to

run a business like that, it’s sub-optimal

and it would be excruciatingly costly.

Being true to yourself and saying ‘this

is something we don’t do, but we have

a really good partner that can offer this,

and we will help drive it’ is the right way

to go about it. No person or company

is omniscient; being humble and

self-aware enough to recognize this

is key to success.”

161

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DELOITTE

162

JUNE 2019


“We have a broad range of consulting

capabilities but there are always areas

we don’t want to invest in or dive deep

into. It’s a symbiotic ecosystem really, for

example we have a network of software

partners that provide the enabling,

empowering technologies below some

of our core capabilities. In the end, we

want to authentically do what’s best for

our clients so it’s critical to know which

partners to work with and how best

to leverage each other’s skills.”

ENABLING TRANSFORMATION

“Some clients, and even some consultants

quite frankly, believe cost transformation

means a consultant comes

in and like a tornado or ‘gun for hire’,

goes around taking all the costs out

with bare bones left and then leaves,”

Schijven comments – but this isn’t the

Deloitte way. “The problem with that

approach is that it’s not sustainable

– cost will creep back in. So, if you truly

want to do strategic sourcing transformation,

holistic cost transformation –

or any transformation for that matter –

you need to embrace the fact that

it truly is a transformation. It’s not

something you do to an organization;

it’s something you do collaboratively

163

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DELOITTE

164

NATASCHA SCHIJVEN, PARTNER SUPPLY CHAIN & MANUFACTURING

OPERATIONS AT DELOITTE ‘PROCUREMENT HAS CHANGED’

“I believe

procurement will

gain more and

more of a seat at

the executive table –

and that’s the way

it should be”


Natascha Schijven,

Partner, Supply Chain & Manufacturing

Operations, Deloitte

with an organization. Transformation

enabling change management is

critical or it will not ‘stick’ and people

will revert back to the way they used

to do things. You need a carefully

orchestrated communication and issue

mitigation plan, agreed upon, visible

executive sponsorship and clear

transformation governance set up to

help people through it. Interestingly

enough many times it’s merely about

treating each other as humans: actively

listen with your undivided attention,

repeatedly engage and communicate,

JUNE 2019


165

involve and ask advice from those most

affected. People want to be valued,

acknowledged, heard and recognized.”

With this commitment to change

management, Deloitte guides its

clients through transformations that

last – and as the importance of

procurement continues to increase,

this will remain key to each one of

its clients. “Cost pressure is going to

keep increasing,” Schijven says. “As

strategic procurement is one of the key

direct influencers to that cost, I believe

it will gain a more important seat at the

executive table – and that’s the way it

should be. If you want to take control

of something – not just your own costs

but those of your suppliers and the full

interconnected value chain, which

is what we’re dealing with in a digital

world – you need to empower those

you put in charge with the appropriate

level of decision-making authority.”

www.businesschief.com


166

ALTERNA:

DIGITAL BANKING

WITH A SOCIAL

PURPOSE

WRITTEN

BY

OLIVIA MINNOCK

PRODUCED BY

JAKE MEGEARY

JUNE 2019


www.businesschief.com

167


ALTERNA

WITH A 110-YEAR HISTORY,

ALTERNA HAS MOVED WITH

THE TIMES TO TAKE ON

BIG BANKING PLAYERS –

CEO ROBERT PATERSON

EXPLAINS HOW IT STILL RETAINS

ITS COMMUNITY VALUES

168

D

escribing himself as a ‘career banker’,

Rob Paterson has been in financial services

for almost 30 years. From building a bank

in Vietnam to working for names such as JPMorgan

Chase and CIBC, his latest role is President and CEO

at a Canadian Credit Union that is developing a truly

digital experience from the foundations of

a century old legacy. Founded in 1908, Alterna

Savings offers services across a network of

35 branches in Ontario – not counting its digital

offering, Alterna Bank, which is available nationwide.

Alterna, Paterson believes, can be David taking

on Goliath in the banking world, all thanks to digital

transformation and disruption of the status quo.

“I’ve grown up around the world,” Paterson

comments. “I’ve always been looking at technology

and the evolution of banking on a universal and

global scale. At Alterna, it’s helped me take on this

organization that’s 110 years old and use my

knowledge and relationships around the world to

start looking at the next 110 years. In the last three

JUNE 2019


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169


ALTERNA

170

“ I ’ VE ALWAYS

BEEN LOOKING

AT TECHNOLOGY

AND THE

EVOLUTION OF

BANKING ON A

UNIVERSAL AND

GLOBAL SCALE”


Rob Paterson,

CEO, Alterna Savings

and Alterna Bank

years, we’ve shown we can reach every

province. Canadians really resonate

with our unique digital banking

experience and our philosophy of

being the ‘good in banking’. We’re very

much focused on trying to help

Canadians reach their home ownership

and retirement needs, and doing it

with a social conscience,” he adds.

The bank’s ethos has been omnipresent

through its digital journey, with

Alterna leveraging the latest technology

to create the best possible experience

for the customers and communities it

serves. “We wanted to see if we could

take our cooperative background,

modernize and transform it into the

digital banking world.” Rather than

tempting new customers in with

teaser rates and gimmicks, Paterson

is keen to highlight that Alterna

maintains high rates on deposits

and low rates on lending.

A FULLY DIGITALIZED EXPERIENCE

A key achievement for Alterna has

been delivering the first ever fully

end-to-end digital mortgage in Canada.

Paterson argues this didn’t happen in

spite of Alterna’s relatively small size,

but because of it. “As a unique small

JUNE 2019


CLICK TO WATCH: ‘ALTERNA SAVINGS MYRECEIPTS’

171

institution, we were able to do something

that none of the Big Five banks

had been able to deliver: the ability to

purchase your home completely on

mobile or tablet, without having to

come into a branch or even get on the

phone.” Throughout this process,

Alterna applied its strong principles by

ensuring it was as informative as

possible, and only gathered necessary

data from clients without overreaching.

Even those who do not apply for a

mortgage are still offered useful

insights. “We can help you be a better

informed customer around how much

debt you should take on, neighborhoods

you want to live in, choosing a

realtor and finding the home of your

dreams. That’s a win for us.” Keeping

customers and communities informed

about their money is paramount to

Paterson and to Alterna. “We’re trying

to be stewards of what banking used to

be, which is something that helps

promote the wellbeing of its customers

and the communities they live in. A

bank should be a catalyst to the growth

of Canadians and their communities.”

www.businesschief.com


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ALTERNA

174

CREATING JOBS FOR CANADIANS

With this community focused drive,

Alterna took on the mantle as one of

Canada’s only ‘cannabis banks’ – a

venture Paterson says none of the Big

Five would support. “The cannabis

companies were licensed and legal,

right?” he argues. “We didn’t have the

right to say no: these are organizations

that will employ Canadians. It’s a

growing sector of the economy. We

really took it on as a cause because we

felt this was what was wrong in

banking: the Big Five could say no

because they had other interests

globally or in the US. Three years later,

we’re proud of that. We’ve helped some

of these companies grow into some of

the biggest Canadian corporations,

creating employment in areas where it

was badly needed.” This is where, for

Paterson, being a ‘David’ pays off yet

again. “We don’t have the SVPs and

EVPs of ‘no, you can’t do that’. We don’t

have all the politics and bureaucracy

that goes with big corporations.”

JUNE 2019


GROWTH THROUGH PARTNERSHIP

As the bank grows to compete with

the Big Five, Paterson is keenly aware

that Alterna can’t do everything by

itself. Now, the bank is renowned for

its collaboration with startups as well

as larger software giants. “We’ve built

a tremendous reputation in the

industry with fintechs, both domestically

and globally,” he comments.

“They see that we are advocates for

them. We’re not like the larger institutions

that say: ‘If you deal with us, you

can only deal with us exclusively in the

Canadian marketplace.’

“We realize it has to be a win-win and

we don’t overcomplicate agreements.

This allows us to get to market quickly

on things that are going to create less

friction in the banking experience.

That has become a core strength.

For our staff, it’s fantastic to have

the experience of working with other

agile, innovative companies,” Paterson

adds, noting that the company is

approached proactively by fintechs

on a regular basis.

A key partner for Alterna has been

Backbase, one of the premier UX

interfaces for mobile and web, with

175

Robert Paterson

EXECUTIVE PROFILE

Rob is President and Chief Executive Officer of Alterna

Savings and Credit Union and Alterna Bank, positions

he has held since April 2013. Prior to joining Alterna,

Rob worked in financial services for over 25 years

and has held executive positions within such

companies as CIBC, JP Morgan CHASE, Aon Corp,

and McKinsey & Company. He sits on the Board

of Directors of the Co-Operators, Central 1,

Alterna Bank and Enactus. Furthermore, Rob

advises many Fintech start-ups across Canada.

www.businesschief.com


ALTERNA

1908

Year founded

500+

Approximate number

of employees

176

HQ

Ottawa, Ontario,

Canada

JUNE 2019


www.businesschief.com

177


ALTERNA

178

which the company enjoys “a phenomenal

relationship”. “Our partnership

with Backbase has helped us to form

an understanding of how to develop

a more dynamic digital and online

front-end,” says Paterson. Backbase’s

widget concept provides a holistic

digital channel platform that supports

the evolution of specific products and

services, and allows businesses to be

part of an ecosystem that drives digital

operability. Through the partnership,

Alterna will deliver the first multi-tenanted

instance of Backbase in Canada.

“Backbase really understands the

importance of the cooperative system

in Canada, and has really openly

partnered with the credit union space

here to allow us to accelerate our

digital capabilities,” says Paterson.

Meanwhile, Sensibill is a domestic

Canadian fintech transforming the way

businesses and consumers deal with

receipts. “They’ve taken what a lot of

people would view as a non-tech

category and developed it into a real

value-added solution.” Alterna has

branded Sensibill’s solution for its own

members as MyReceipts. “It allows

you to keep track of your spending,”

explains Paterson. “Whether you’re

JUNE 2019


“WE DON’T

HAVE ALL THE

POLITICS AND

BUREAUCRACY

TH AT G O ES

WITH BIG

CORPORATIONS”


Rob Paterson,

CEO, Alterna Savings

and Alterna Bank

a small business owner or an individual

consumer, you have the ability to

digitally capture any receipt for any of

your purchases through your smartphone’s

camera.” Paterson enjoys a

long-standing relationship with founder

Corey Gross, who he came into

contact with through various Money20/20

and Finovate conferences –

together, the pair are working to evolve

and develop Sensibill’s solutions.

“Corey has worked with us on an

endless cycle of feedback and

support,” he comments. “We view him

as a great Canadian success story.”

Alongside innovative startups,

reliable global organizations such

as software provider Salesforce are

also key in helping Alterna build scale.

“The Salesforce ecosystem allows us

to be bigger than we are,” Paterson

explains. “It allows us to plug in

partners at a much easier rate. When

we developed Canada’s first digital

mortgage, we tried to enrich our

understanding and knowledge of our

members and customers – Salesforce

was a great agile partner with an

endless series of tools.”

In addition, Salesforce was able to

help Alterna connect with other

179

www.businesschief.com


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“WE DON’T WANT YOU

TO TAKE OUT THE

BIGGEST MORTGAGE

YOU QUALIFY FOR IF

THAT MEANS YOU CAN’T

TAKE THE FAMILY ON

VACATION, CARE FOR

A LOVED ONE OR

BUY YOUR KIDS THEIR

NEW BIKES”


Rob Paterson,

CEO, Alterna Savings

and Alterna Bank

companies. “We were able to have

conversations with those peers about

their digital journeys,” says Paterson.

The relationship with Salesforce serves

to highlight how businesses look for

more than just a piece of software from

their partners. “Technology in and of

itself isn’t the end state. The ability to

get access to thought leaders, an

ecosystem that will be co-developed

by hundreds if not thousands of

individuals across the globe, and to be

able to see where they’re going in the

future – you can’t put a price on that.”

A DIGITAL CULTURE

“When we started talking about going

digital and building out the bank

globally, you naturally worry that

people will be concerned about leaving

the legacy business behind. Within our

organization, there was actually

extreme excitement,” Paterson reflects.

“Our employees saw this as a great way

to stay relevant.” Alterna has gone to

great lengths to develop a positive and

forward-thinking culture among its

staff, celebrating such wins in 2019 as

being named one of National Capital

Region’s Top Employers (in Ottawa),

and scooping the Platinum level status

on the Aon Best Employer list.

Paterson is also keen to highlight the

impact of technology in the office.

“We’ve moved to digital training and

education for all our staff – now, they

can learn on a mobile device anywhere

at any time. We’ve changed the

physical aspects, moving people into

open, tribe-like settings of working

with their fellow team members,

building in electronic desks so they can

elevate work surfaces at different

times of the day.” The CEO is also keen

to highlight the positive impact social

media has had on his staff, making

181

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ALTERNA

182

himself available to answer questions

on Twitter – even on weekends. “It

makes everyone feel good that when

they have a question, they can ask it,

and they’re going to get an authentic,

honest response.”

BUILDING ON SUCCESS

Having unlocked the cannabis market,

developed the first digital mortgage

and scooped a plethora of awards,

Alterna shows no signs of slowing

down. Over the coming months and

years, the bank will continue to

transform the way it serves its customers.

“The big focus for us going forward

is to really build out our CRM capability

so we can create more intimacy. Then

we want to deliver better content. We

want to improve on the digital dialogue

that can happen with the customer in

terms of chat capability.”

JUNE 2019


“WE’VE MOVED

TO D I G ITA L

TRAINING AND

EDUCATION FOR

ALL OUR STAFF”


Rob Paterson,

CEO, Alterna Savings

and Alterna Bank

183

The bank will also remain true to its

strong principles throughout its

journey, striving to have honest

conversations with customers. “It’s not

so much how much debt you can

afford, but having the right amount of

debt so you can live your life,” Paterson

emphasizes. “We don’t want you to

take out the biggest mortgage you

qualify for if that means you can’t take

the family on vacation, care for a loved

one or buy your kids their new bikes.”

Despite – or perhaps because of –

technology transformation, this is

something that won’t change.

“We want to have that conversation

with you digitally.”

www.businesschief.com


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